Transnational Corporation of Nigeria Plc (Transcorp) has posted N15.77 billion revenue and N1.49 billion Profit After Tax (PAT) in its first quarter operations. Specifically, the firm’s result for the first quarter (Q1) ended March 31, 2017 showed 20 per cent increase in revenue, from N13.2 billion recorded in the corresponding period in 2016 to N15.8 billion during the period under review.
Similarly, the firm’s PAT rose to N1.49 billion, which represents 24 per cent rise when compared to N1.21 billion achieved during the corresponding period in 2016.
The firm attributed the improved first quarter performance to top line Year-on-Year growth recorded in its power business as a result of improvements in gas supply.
Gross Profit stood at N6.94 billion, up from N5.91billion achieved in Q1 2016 while operating profit increased from N3.25bn in Q1 2016 to N4.23 billion in Q1, 2017. Its net finance cost increased to N2.81billion compared to N1.52 billion in Q1 2016.
The President and Chief Executive Officer, Transcorp, Emmanuel Nnorom, explained that Transcorp’s resilient performance was drawn from the diversity of its various business offerings.
He pointed out that the closure of the Abuja Airport negatively affected occupancy for the hotel business.
He, however, expressed optimism that the reopening of the airport would pave the way for aggressive marketing that will improve traffic and occupancy at the Hotels.
“The closure of the Abuja Airport negatively affected occupancy for our hotel business, however this was buoyed by top line Year-on-Year growth in our power business following improvements in gas supply.
“We expect to recover the lost ground brought on by the Abuja airport closure in Q2 2017. The reopening of the airport will pave the way for aggressive marketing that will improve traffic and occupancy at Transcorp Hotels.
“In addition, we expect to see continued improvement in our power sector revenue as gas supply stabilises following the increased capacity of our plant arising from the recent commissioning of Gas Turbine 15.
Transnational Corporation of Nigeria Plc (Transcorp) is a publicly quoted conglomerate with a diversified shareholder base of over 300,000 investors.
“Our portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors. Our notable businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Transcorp Power Limited, owner of 972Mw power plant. Teragro Commodities Limited, operator of Teragro Benfruit plant – Nigeria’s first-of-its-kind juice concentrate plant; and Transcorp Energy Limited,” he added.