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From Uche Usim, Abuja
The Transnational Corporation of Nigeria (Transcorp Plc) has released the Group’s 2021 performance which shows that gross earnings increased to N111.2 billion from N75.3 billion recorded in 2020.
Companies making up the Group are; Transafam Power Limited, Transcorp OPL 281 Nigeria Limited, Transcorp Power Limited,Transcorp Hilton Abuja, Transcorp Hotels, Calabar and Transcorp Energy.
The Group Executive Chairman of Transcorp Plc, Mr Tony Elumelu, who made the disclosure at its 16th Annual General Meeting (AGM) held in Abuja, attributed the positive performance to a diversified investment portfolio, especially in Afam Power Limited and Transcorp Power Limited that accounted for 81 percent of the gross revenue. The rest (19%) is from its hospitality portfolio.
According to him, the Profit Before Tax for the Group increased to N28 billion in 2021, from N1.6 billion in 2020, while Profit Before Tax for the company (Transcorp Power Limited) increased to N4.02 billion in 2021 from N2.7 billion in 2020.
In the same vein, Profit After Tax for the Group increased to N23.8 billion in 2021 from N3.8 billion in 2020, while that of the company increased to N3.4 billion in 2021 from N2.4 billion in 2020.
The Group’s total assets grew to N416 billion in 2021 from N319.2 billion in 2020 while the total assets for the company declined to N89.7 billion from N90.5 billion in 2021.
Elumelu said the 2022 operational year will see the Group braving the odds to optimise existing assets and pursuing growth opportunities.
“Prior to now, only Transcorp Hotels was the major income stream. But now, we took the risks and diversified into power and that has paid off as a good investment decision because it is responsible for 70% of the Group profit.
“You’re investing in the company of the future. Our company has continued to surpass its performance despite macroeconomic difficulties”, Elumelu told the shareholders.
On the oil theft, the Trancorp Chairman hailed the government for responding swiftly after he tweeted about the scourge that assumed a frightening dimension in recent months.
“I must commend them. A day or two after the tweet, the security agencies went to Port Harcourt to confront the issue. There is motion at least and we hope there will be movement”, he stated.
On frequent national grid collapse, Elumelu expressed hopes that the government will give the matter the utmost priority it deserves, adding that the country’s economy would sink without power.
In her remarks, the President and Group Chief Executive Officer of Transcorp Plc, Owen Omogiafo hailed the Board for approving the total renovation of Transcorp Hotel Calabar.
She revealed that Transcorp Hilton Abuja has 670 rooms and will be expanded to 1,000 rooms in the near future.
She also lamented the legacy debts inherited by Transcorp Plc as it acquired some government assets through privatization.
“Legacy debts are there and we are engaging with relevant authorities on it. Ughelli Power plant has N60 billion debt on its neck, Afam Power plant is N5 billion.
“We want to drill one of the wells this year, which is OPL 281”, she said.
In his remarks, Farouk Umar who represented shareholders said he appreciated the company’s management for growing the profit from N4 billion to N23 billion in one year.
