Transcorp announces record Group revenue of N41.3bn for FY 2014

Transnational Corporation of Nigeria plc (Transcorp) has announced its audited full-year (FY) 2014 financial results, showing a 120 percent growth in revenue. The Group posted record revenue of N41.3 billion (N18.8bn in 2013).

Particularly, strong contributions were made by its power business (Transcorp Ughelli Power Limited) and hospitality subsidiary (Transcorp Hotels plc).

Gross revenue rose to N41.3 billion, representing 120 percent growth year-on-year from (2013:N18.8bn), while gross profit increased in 2014 by 92 percent to N27.6 billion (2013:‎N14.4bn).

Group operating profit for the year ended 2014 was N13.6 billion, an increase of 33 percent from corresponding period in 2013.

Emmanuel Nnorom, president/CEO, said: “We are delighted to record an impressive performance, despite the challenges we experienced within our operating environment. We achieved significant growth in our top-line and maintained our margins within acceptable limits, despite the delayed implementation of the Transitional Electricity Market (TEM), exchange rate movement and reduced occupancy arriving from security challenges and the viral epidemic in West Africa.

“We are particularly impressed with the performance of our power business, which currently is producing a generating capacity of 610MW, up from 160MW at acquisition in November 1, 2013. Our ability to outperform our capacity targets agreed at privatisation, reiterates our commitment to excellence and our diversification strategy.

“Going forward in 2015, we expect an even better performance across all our business focus areas, including the anticipated implementation of TEM and an increasing stability in the economy and tourist environment.

“Our new hotels development in Lagos and Port Harcourt are progressing well and our Agribusiness division has commenced delivery of juice concentrates to international beverage manufacturers in Nigeria. With the signing of our Production Sharing Contract (PSC) by the Nigerian National Petroleum Corporation (NNPC), our oil and gas business is on course for the drilling of its first well this year. ‎

“Group net finance cost for the year grew from N2.5 billion in 2013 by 208 percent to N7.8 billion in 2014, principally from foreign exchange losses and full year of debt service on acquisition finance loan for Transcorp Ughelli Power Limited.

“Profit before tax declined by 14 percent to N7.7 billion in 2014 from N9.0 billion in 2013, while total assets for the Group grew by 14 percent, from N149.6 billion in 2013 to N170.8 billion for the period.‎”

Transcorp is a publicly quoted conglomerate with a diversified shareholder base of over 300,000 investors. Its portfolio comprises strategic investments in the power, hospitality, agribusiness and oil and gas sectors.

Its businesses include Transcorp Hilton Hotel, Abuja; Transcorp Hotels Calabar; Ughelli Power plc, Teragro Commodities Limited, operator of Teragro Benfruit plant – Nigeria’s first-of-its-kind juice concentrate plant, and Transcorp Energy Limited.