Transnational Corporation of Nigeria (Transcorp) Plc has recorded the strongest pre-tax profit among the largest firms in Africa’s largest economy or NGX-30.
The stellar performance means the management and board of directors of the conglomerate are an inch away from fulfilling a pledge that they made a few years ago that they would enhance shareholders’ value on investment through robust dividend pay-out.
Transcorp’s pretax profit surged by 658 percent as at June 2021, and that compares with Okomu, 126 percent; Presco, 124 percent; FlourMills of Nigeria, 79 percent; Dangote Cement, 73 percent; Fidelity Bank, 72 percent; United Capital, 65 percent; MTN Nigeria, 54 percent; Nigerian Breweries, 43 percent, United Bank for Africa, 33 percent.
The company’s revenue from energy sent out to the grid spiked by 54.69 percent to N29.70 billion as at June 2021, and the segment has been increasingly and significantly contributing to Group’s top line growth.
Operating margins hit a three year high of 30.67 percent, which means it has been able to manage expenses so as to maximise profitability.
Its operating income surged by 71.71 percent to N16.33 billion in the period under review from N9.51 billion the previous year.
With a strong cash position of N23.32 billion, Transcorp can finance nearly all of its capital expenditure, settle its debt, and reward shareholders in the form of dividend payment.
Nigeria’s investment conglomerate, with interest in oil and gas, hospitality, and Agriculture, has faced challenges on many fronts.
In 2016 the firm posted a loss of N12.19 billion, elicited by foreign exchange loss on financing as the sudden slump in crude oil price of mid-2014 that stoked a severe dollar scarcity tipped the country in its first recession
That same year, incessant attacks on oil pipelines by the Niger militants stoked gas scarcity hit the company’s power investment.
It was owed N20 billion by the state- owned Nigerian-Bulk Electricity Trading plc for electricity it had already supplied to the national grid.
Today, the company has ridden out of the storm and it continues to pursue expansion in accordance with its mission to improve electricity supply and reduce poverty through job creation.
Transcorp acquired two state-owned power assets – Afam Power Plant Plc and Afam III Fast Power Limited – for N105.3billion, bringing its installed capacity to 2,000 megawatts.
Owen Omogiafo, president and group chief executive of Transcorp, said the group will continue to push further to tap the opportunities required to accomplish the vision of improving lives and transforming Nigeria.
“Moving into the future, we shall continue to expand, invest, and build the brand of the company sustainably as we believe that there is a lot of value trapped within Transcorp that needs to be unleashed and recognized by the market,” Omogiafo said.