Transcorp, a diversified conglomerate with a presence in the Power, Oil & Gas, and Hospitality sectors, on Tuesday, announced its third-quarter 2021 financial result, which shows a 672.1 percent increase in Profit After Tax (PAT) to N13.5 billion in September 2021 compared to N1.7 billion in September 2020.
The signing of Share Sale and Purchase Agreement (SSPA) and 100 percent acquisition of Afam Power Plant, as well as settlement of Sacoil Dispute on OPL281, in 2020, administrative handover of Afam Power Plc, and the launch of Aura in 2021 by Transcorp were key milestones for the company, said Owen Diana Omogiafo, president/Group CEO, during investors and analysts conference call.
Comparing pre-pandemic performance, the company showed recovery in income with a 101 percent year-on-year (YoY) growth higher than pre-pandemic in 2019.
The Group’s Profit After Tax increased to N13.5 billion in the third quarter (Q3) 2021 from N6.7 billion in 2019.
Profit Before Tax (PBT) of the Group rose to N14.13 billion in Q3 2021 from N2.02 billion in Q3 2020, representing 599.5 percent increase.
The Group’s Gross Earnings rose by 57.4 percent to N85.6 billion in September 2021, as against N54.4 billion in September 2020.
Net operating income of the Group increased by 77.1 percent to N27.52 billion in the year under review, from N15.54 billion in the corresponding period.
Operating Expenses of the Group rose from N8.9 billion in Q3 2020 to N12.2 in Q3 2021, representing a 36 percent increase.
In its outlook, the company set a target of 677 Average (MW) Available Capacity and 575 Average Capacity (MW) Generated from Transcorp Power Limited subsidiary, its subsidiary in the fourth quarter of 2021.
Transcorp also seeks to build and operate scalable (25MW – 150MW) nuclear energy-powered electricity generating plants in Nigeria.
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From TransAfam Power Limited, the company targets 166 Average (MW) Available Capacity and 102 Average Capacity (MW) Generated in the fourth quarter of 2021.
Event Centre Abuja is one of the ongoing projects and new businesses by Transcorp, which is expected to be delivered in 2022.
The event center, which has a 3,000 banquet-seating capacity, is aimed at attracting larger events into Transcorp Hilton Abuja. Transcorp Events Centre which will be purpose-built, will feature refined and functional amenities that will become a suitable venue to host medium to large scale events such as trade fairs, concerts, weddings.
Other ongoing projects to be delivered in 2022 and 2024 are the optimization of its assets both in Lagos and Port-Harcourt. Lifestyle Center is to be constructed in Ikoyi and Transcorp Hotels, PH.
There is also an upgrade of Transcorp Hotels Calabar, Aa3-phase approach to the renovation project of Transcorp Hotels Calabar – guest rooms, operational/infrastructure issues, and exterior, to be ready in 2022.
In 2022, the company is expected to deliver on refurbishment of its key food and beverage outlet for optimal guest satisfaction. These include capacity upgrade for Bukka restaurant, capacity and ambience upgrade for Oriental restaurant and meeting rooms and congress hall upgrade.
“We have aggregated over 2,087 hotel rooms, 509 Apartments, restaurants and experiences at pocket-friendly prices starting as low as N10,000 per night.
“Aura through strategic partnerships and drives is one of the top 5 listed booking platforms overtaking established local and international brands. It has the largest number of local tour listings in Nigeria,” Omogiafo, and her team said during the conference call held via zoom.
Omogiafo sees positive oil market forecasts for 2021, saying that a potential ramp up of oil production by OPEC+ could help raise Nigeria’s oil production by 10-15% as higher oil prices provide an upside for revenues.
According to her, the non-oil sectors will continue to recover in 2021 driven primarily by a sustained growth momentum in the Agriculture and Telecommunications sub-sectors. However, growth in the Agriculture sector may be slightly moderated by ongoing insecurity in some critical regions of the country.
She said the manufacturing and Trade sectors are likely to remain pressured, on the back of low consumption expenditure and the potential impact of limited access to FX on supply costs.
“We expect the inflation rate to taper in the second half of 2022 as the pressure on supply-side factors ease and the economy adjusts to new electricity tariffs and fuel price regimes. We also expect a modest level of monetary tightening by the central bank in 2021 as growth returns and policy shifts from one focused solely on growth to one that also incorporates price stability,” she said.
