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Transcorp grows operating profit by 145% to N9.7bn

By on July 23, 2014

Transnational Corporation of Nigeria Plc (Transcorp) has announced a growth of 145 per cent in its operating profit for the half year ended June 30, 2014, indicating a bountiful harvest ahead.

According to the unaudited results, Transcorp recorded gross revenue of N21.21 billion, up 177 per cent compared to N7.67 billion posted in the  half year of  2013.

Group operating profit for rose by 145 per cent from N5.1 billion to  N9.75 billion, while profit before tax  grew by 122 per cent from N3.61 billion to N8.0 billion. Total assets for the group grew by six from N149.64 billion as at December 31, 2013 to N158.18 billion as at June 30, 2014.

Commenting on the results, the Chief Executive Officer, Transcorp, Mr. Obinna Ufudo said: “Our half year results for 2014 consolidates the significant growth achieved in first quarter 2014 and firmly sets us on course for the attainment of full year 2014 financial targets.”

He said the company is very pleased with the continued growth in capacity and output at its Ughelli Power plant.

He said the plant’s available capacity and output peaked at 453 MW during the period, up from the 160MW when the plant  was taken over on November 1, 2013.

“We are on course to reach our target available capacity of 715MW by end of the year. In addition, our flagship hotel, Transcorp Hilton Abuja achieved strong revenue growth through increased traffic from its successful hosting of the World Economic Forum for Africa event in May 2014,” he said.

“Overall, we remain focused on achieving our medium term objectives to develop new hotels, expand our available power generation capacity, diversify and increase scale of our agribusiness and exploit opportunities within the oil and gas industry. We expect steeper growth rate for the rest of the year as our turnaround strategies take firmer root,” Ufudo noted.

Shareholders of Transcorp, for the first time in seven years of the company’s existence, received a dividend for the 2013 financial year.

Ufudo had made the promise of dividend payment to the shareholders last year based on the repositioning efforts of the group. At the end of the year, the company declared a dividend of N1.9 billion, which translated into five kobo per share.

 

 

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