January 31, (THEWILL) – Transnational Corporation of Nigeria (Transcorp), reported a two-fold jump in bottom line to N34.1 billion for the 2023 financial, according to its earnings report issued Wednesday.
Energy, which contributed 78 per cent of gross revenue, is the heart of the conglomerate, whose other divisions comprise agro-allied business and hospitality.
Turnover rose to N151.3 billion from N103.3 billion a year earlier, in turn driving gross revenue, which leapt 44 per cent to N194 billion.
Transcorp financials were released a day after one of its biggest rivals in the energy market, Geregu Power – controlled by billionaire magnate Femi Otedola announced it recorded a 58 per cent jump in post-tax profit to N16.1 billion.
Tony Elumelu, chairs Transcorp’s directors’ board, and is its biggest shareholder, just as he is the chairman and top shareholder of Nigeria’s most profitable bank, United Bank for Africa (UBA).
Together with his family, Mr Elumelu holds about 36 percent stake in Transcorp.
Transcorp power has a combined installed generating capacity of 2,000 megawatts from three power plants, while Geregu has 972 megawatts.
Transcorp’s finance cost for the year soared by roughly 60 per cent on the back of higher cost of servicing foreign debt after a free fall in the value of naira, following several foreign exchange reforms during the year, worsened the conversion rate of the local currency into dollars.
Profit before tax accelerated 84.5 per cent to N55.9 billion, while profit after tax advanced to N34.1 billion from N16.8 billion.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
