Expansion drive in full session at Transcorp

As part of its strategic thrust for brand building and extension, Transcorp Plc, a leading indigenous conglomerate in Nigeria has resolved to continue to improve operational and cost effectiveness as well as explore opportunities to expand product offering.

With interests from hotels, agriculture, power generation and oil exploration, Transcorp, the rapidly transforming conglomerate is providing ordinary shareholders a uniquely diversified opportunity to share in Nigeria’s burgeoning economy.

Following major acquisitions in power and agribusiness, new initiatives in its hotel and tourism business and the ongoing exploratory activities from its existing oil block. Transcorp shareholders are already reaping rewards.

Giving an update on the recent developments by Transcorp Plc in Lagos on Friday, President/CEO, Transcorp Plc, Mr. Emmanuel Nnorom noted that the company has already made significant progress in key sectors of its business; in the hotel and power sectors a development that is already impacting positively on the company’s performance.

According to Nnorom, ‘’Transcorp, has made several important business decisions which will have significant impact on its fortunes. Some of the strategic initiatives outlined by the President include, additional turbines for power generation, increase in the output of the plant from 160MW to 650 megawatts in 2015 and being on track to deliver 850 megawatts of available capacity in 2016. Our target is to be responsible for at least 25% of the total power generated in Nigeria. Currently, challenges to the actualisation of these goals include but not limited to supply of good quality gas, transmission losses and inadequate evacuation infrastructure and payment of owed debts to Transcorp Power limited by MBET. Despite these challenges, Transcorp Power limited is determined to forge ahead in the discharge of her primary objectives and in the creation of lasting value for Nigerians at large.

Further significant progress was shown in the hospitality arm of the business. Transcorp Hotels plc successfully closed Tranches 1 and 2 of its N30bn bond issuance programme, which is intended to fund the upgrade of Transcorp Hilton Abuja and the development of a multipurpose banquet centre. Other major ongoing projects include the Transcorp Hilton Ikoyi, pilling is expected to be completed by May 2016.

Transcorp Hilton Port Harcourt has gotten the necessary planning approvals from the Rivers State Government and we are currently revising our design to optimize the use of the expanded site.

Transcorp Hilton’s Abuja will be upgrading 670 rooms in the next 18months. The current focus is on the installation of new elevators and procurement of fittings for guest and meeting rooms. In addition, external works on construction of a new access way, warehouse and car park have commenced.

Another important highlight of the Emmanuel Nnorom communication is the news of the signed production sharing contract for oil block OPL281 with the Nigerian National Petroleum Corporation and has continued to prepare for drilling; ensuring adequate measures are put in place for seamless production.

Nnorom thanked Transcorp’s shareholders for their support and assured them of further opportunities ahead, stressing that that the Board and Management will not relent in positioning Transcorp as a true vehicle for popular participation in Nigeria’s bright future and prosperity. “We have put in place a world class management team and are committed to developing the synergies between our natural resources portfolio and our power interests, creating an integrated energy approach that directly links Nigeria’s natural resource wealth to the daily needs of our people”.

Commenting during the session, the Managing Director of Transcorp Power limited, Mr Adeoye Fadeyibi commended the Federal Government for the innovations introduced towards repositioning the power sector such as increase in tariff to strengthen the energy sector,on going metering processes resolving issues of stranded power. He reiterated the commitment of the Transcorp Power limited to increase the capacity of the power plant in the short term.

‘We have repositioned the Ughelli Power Plant towards contributing significantly to the government’s plan to generate 10,000mw before the end of next year. It is our plan that that we will contribute significantly to the energy pool,’ Fadeyibi said