Transnational Corporation of Nigeria Plc (Transcorp) Plc has reported a revenue of N76.36 billion for the year ended December 31, 2019. The conglomerate ended the year with a profit before tax (PBT) of N7.9 billion and profit after tax (PAT) of N3.7 billion.
According to the company, its hospitality business, Transcorp Hotels Plc (THP), grew notably by 17 per cent in its revenue and had a gross profit increase of 19 per cent in comparison with 2018. Revenue from power business, Transcorp Power Limited (TPL), however, declined during the period due to gas supply, transmission, commercial and technical issues.
Commenting on the results, the President and Chief Executive Officer of Transcorp, Valentine Ozigbo, said: “Our full year 2019 result attests to our resilience and long-term commitment to the sectors in which we play as we have had to focus on creating value for our shareholders while contending with significant operational challenges including severe gas shortages, mandated reduction in generation from the National Control Center and importantly, revenue exposures from delayed payment of receivables in our power business.”
Ozigbo explained that on their part, they have taken several actions aimed at proactively and sustainably addressing these issues.
“These include the activation of our Gas Supply and Aggregation Agreement, guaranteeing gas supply to our power plant in Ughelli; proactive engagement with our gas transporter to prevent further vandalism of gas pipelines; engagement with regulatory agencies to review regulatory actions negatively impacting power evacuation from our plant; and preventive maintenance of our turbines” he further explained.
According to him, the actualisation of these steps, as well as improvement in market payment for electricity generation, will facilitate their projected revenue expansion in FY 2020 and in coming years.