Transcorp Group Holds 2019 Analysts Parley, Projects Improved Performance Outlook Despite Tough Operating Environment
CJuly 23, 2019. Lagos, Nigeria. Transnational Corporation of Nigeria Plc (“Transcorp”) held its Half Year Analysts Parley for journalists, financial analysts and investors. Represented by its President/CEO, Subsidiaries MD/CEOs and other senior management staff, the company presented and discussed its financial results for the half-year ended 30 June 2019. Highlights of the Group’s results revealed a gross revenue of N37.76bn and a Profit Before Tax (PBT) of N5.05bn for the period under review, with a drop-in year-on-year performance. This drop was attributable to gas challenges faced by the power business, which is being addressed by Transcorp’s Management.
Commenting on the results, the President and Chief Executive Officer, Transcorp, Valentine Ozigbo, stated that “Our half year results were affected by severe gas shortages in our power business, especially during the first quarter of the year when supply dropped from an all year peak of 150 mmscf/d to an average of 89 mmscf/d.”
Mr. Ozigbo however noted that “with the support of our Board, management is implementing a number of action plans aimed at addressing the gas supply challenges in a sustainable manner. These include the activation of a recently reviewed Gas Supply and Aggregation Agreement as well as the optimization of the opportunities embedded in it, and the exploration of additional affordable gas supply sources. Actualization of these as well as improvement in market payment for electricity generation will drive recovery in the second half of 2019.This is in addition to even more significant contributions from our hotel business, which is expected to benefit from increased occupancy rates following the conclusion of our US$100m hotel upgrade. The upgrade has boosted our luxury service offerings and cemented Transcorp Hilton’s reputation as an award-winning world luxury hotel.”
Reiterating Transcorp’s bullish performance in recent years, he further stated that “Through a mix of operational efficiency and strategic business development, we are confident of a positive Q3 performance and we remain committed to our value creating purpose of improving lives and transforming Nigeria”
It is noteworthy that Transcorp Consortium recently emerged the Preferred Bidder for Afam Genco, comprising Afam Power Plc and Afam Three Fast Power Limited, after a highly competitive bid conducted by the Bureau of Public Enterprises. “Having attained this laudable milestone, we expect a significant growth in the company’s performance in the future. This brings us closer to achieving our aspiration of providing power to one out of every four Nigerians” Mr. Ozigbo concluded.
Analysts present at the event expressed their appreciation for the detailed presentation and clarification provided by the Transcorp team. They particularly commended Transcorp’s commitment to providing regular updates to key stakeholders on actions being taken by the company to thrive in the tough operating environment.