Transcorp Shareholders Approve N1.9bn Dividend

James Emejo in Abuja

Shareholders of Transnational Corporation of Nigeria Plc (Transcorp) have approved the N1.93 billion dividend recommended by the directors for the 2014 financial year. The dividend translated to six kobo per share.

Transcorp’s gross earnings increased by 120 per cent to N41.3 billion compared to N18.8billion in 2013, reflecting the first full year of earnings from the power business.

Group operating profit also rose to N13.6 billion in 2014 compared to from N10.2 billion in 2013. However, group profit before tax (PBT) declined by 14 per cent in 2014 owing to significant increase in net finance cost as profit after tax decreased to N3.3 billion compared to N6.9 billion in 2013.

Nevertheless, the Group’s total assets grew by 14 per cent to N170.8 billion from N149.4 billion the previous year. Speaking at its ninth Annual General Meeting (AGM), Chairman, Transcorp, Mr. Tony Elumelu said:”Despite the challenging operating environment of the past year, we remain resolute in our determination to deliver on our vision of building a conglomerate of successful businesses.”We are poised to advantage of all the opportunities that will arise in the course of 2015 and are committed to delivering on all our projects.”

According to him, “Transcorp’s shareholders are generally long term shareholders and we know that in the past, those shareholders have lost money. We have our work cut out for us to help them recover that money and our focus is on planting seeds to grow the company through re-investment of profits among other measures. We have achieved consistency in dividend delivery and corporate stability and now we are turning our focus to growth. This AGM reiterates our commitment to creating sustainable value for all stakeholders.”

He said on its power business, the company has set a target power output level of 850MW/day by year-end 2015.

“We will accelerate our expansion plans in the year 2015 by looking at several key acquisitions during the year, while still maintaining our project plans with international power stakeholders, with the aim of partnering in the installation of our proposed Greenfield 1,000MW project which shall be operational in the next three years.”

Shareholders collectively approved the 2014 annual account and consolidated financial statements and commended the company for consistently delivering on dividend payment since the arrival of Elemelu on the board of the company.

Chief Executive Officer of Transcorp, Mr. Emmanuel Nnorom said:”The story of Transcorp is a standout among conglomerates in Nigeria and one that gets better each day.

“Our focus early on was turnaround and stabilisation and this year’s results reiterate this commitment. Now, our focus is on growth. From hospitality to power, agribusiness to energy, we are blazing a trail in the sectors in which we operate and our ability to deliver in the face of strong economic headwinds, as we witness more stability in the economy, we will be able to perform ever better.”