Transcorp Recovers from Loss, Records Profit After Tax of N8.9bn

Goddy Egene

Transnational Corporation of Nigeria Plc (Transcorp), Nigeria’s foremost investment conglomerate has announced financial results for the nine months ended September 30, 2017, showing a profit after tax (PAT) of N8.9 billion compared with a loss in the corresponding period of 2016. The results showed revenue of N56.76 billion, up by 35 per cent from N41.92 billion in 2016, while gross profit improved from N19.84 billion in 2016 to N25.62 billion, indicating a growth of 45 per cent. Similarly, operating profit grew from N11.58 billion in 2016 to N16.81 billion.

Finance costs, which surged to N24.37 billion last year due to the impact of the naira devaluation, fell to N7.77 billion this year in the nine months under review. Profit Before Tax (PBT) stood at N9.04 billion, a significant recovery from a loss before tax of N12.7 billion. The company improved its bottom-line from a loss N14.21 billion in 2016 to PAT of N8.19 billion in 2017.

Company’s total assets also grew to N287 billion, up from N232 billion as at December 31, 2016, while shareholders’ funds grew to N97 billion up from N86 billion as at December 2016.

Commenting on the results, the President/Chief Executive Officer, Transcorp Plc Mr. Adim Jibunoh said: “Our Q3 2017 performance highlights a significant improvement from FY 2016. This result was achieved largely through improved and sustained production capacity in the power business as a result of improvements in gas supply amongst other initiatives and the positive outlook in our hospitality business.”

According to him, the company’s power plant has consistently received positive ranking. “Our power plant has consistently ranked as the number one power producer in the country for Q3 2017 and we are on track for a stronger performance in fourth quarter (Q4) 2017, as we progress plans to increase our available capacity. In addition, improvements in general economic activity in Abuja (on the back of implementation of FY 2017 budget) and return to operations of newly upgraded room stocks will boost occupancy and top line performance for Transcorp Hotels in Q4 2017,” Jibunoh added.