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Transcorp grew PAT by 672% in Q3

By Geoff Iyatse
06 December 2021   |   3:47 pm
Transnational Corporation of Nigeria Plc (Transcorp) grew its profit after tax (PAT) by a record 672.1 per cent year-on-year (YoY) in the third quarter (Q3) of the year on the back of what the company...

Transnational Corporation of Nigeria Plc (Transcorp) grew its profit after tax (PAT) by a record 672.1 per cent year-on-year (YoY) in the third quarter (Q3) of the year on the back of what the company described as an aggressive growth plan and efficient cost optimisation strategy.

According to its financial, the group’s PAT rose from N1.75 billion posted in Q3 2020 to N13.45 billion last quarter. In the period, the conglomerate’s profit before tax (PBT) also grew by almost 600 per cent, from N2.02 billion to N1413 billion while gross earning moved up 57.4 per cent, from N54.38 billion to N5.59 billion.

Its net operating income also rose from N15.54 billion to N27.53 billion, translating to 77 per cent improvement.

The company’s total assets, shareholders’ fund, post-tax return on equity and post-tax return on assets were also green. But operating expenses recorded moderate growth, rising by 36 per cent to close during the reviewed quarter at N12.2 billion.

Transcorp, like many other companies, was in red the same quarter last year owing to the COVID-19 impact. But the impressive performance last quarter suggests that the company has put the ruin of COVID-19 behind with the executive, saying the years ahead hold great prospects for its operations.

Speaking at the analyst presentation and investor call, President/Group CEO of the Company, Owen Omogiafo said: “Transcorp remains a diversified conglomerate with commanding presence in the power, oil and gas and hospitality sectors. We also have strong financial performance with an aggressive growth agenda. Our deeply rooted values are the 3Es of execution, enterprise and excellence.”

Omogiafo said the group was bullish across all areas of operation – power, energy and hospitality. She added that it would continue to improve its cost optimisation strategy, take advantage of growth opportunities and expand market.

Its hospitality segment has recorded 63 per cent year-to-date (YTD) occupancy ratio, which has returned it to pre-COVID-19 level, as against 28 per cent it attained last year. The subsidiary also recorded 115 per cent improvement in revenue and 149 per cent rise in gross profit.

In its power segment review, Transcorp is eyeing Q4 2021 target, 575 megawatts (MW) average capacity from its Transcorp Power Limited and 102 MW from Trans Afam Power Limited.

“The current available capacity for TPL and TAPL are 539MW and 120MW, respectively. Our plants are undergoing significant upgrades and repairs that will significantly increase the available capacity by December 2021. Given the gap in the sector and the increasing electricity demand, the power sector remains an attractive investment choice,” the group said.