Transcorp’s declares N2bn dividend payment for 2022

Transnational Corporation (Transcorp) plc, at its investors and analysts conference call on Thursday, declared N2 billion dividend payment for 2022.

The conglomerate with assets in oil and gas, hospitality, and power, according to Joseph Adegunwa, the group’s chief financial officer, presented a comprehensive overview of the group’s performance, highlighting key achievements across its portfolio.

Adegunwa presented a comprehensive overview of the group’s performance, highlighting key achievements across its portfolio.

In the first quarter of 2023, the group recorded N32.4 billion in gross earnings, reflecting an improvement from N31 billion, despite facing economic and gas challenges that affected the power business’s generation capacity.

According to him, 2022 will be the 5th consecutive year of unbroken dividends payment by Transcorp, since the Tony Elumelu led team assumed leadership of the conglomerate.

Transcorp ended the year with a profit before tax of N30.3 billion, an increase from N28 billion in 2021.
It stated that the performance resulted in an increase to the company’s asset base, shareholders’ funds, and consequently, a 150 percent growth in dividend payment.

Although an exchange loss recognized on foreign-denominated liabilities impacted the Group’s profitability, Transcorp maintained its revenue growth in Q1 2023.

“We are optimistic about a full rebound in Q2 2023, with the increased-generated capacity from our power business and higher occupancy from our hospitality business,” Adegunwa said.

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In 2022, Transcorp Group sustained its growth trajectory and ended the year with gross earnings of N134.7 billion, a 21 percent increase from N111.2 billion recorded in 2021. This growth was largely driven by the power and hospitality businesses.

Gross profit grew by 21 percent, closing at N66.4 billion in 2022, from N54.8 billion in 2021.
According to the conglomerate, despite facing inflationary pressures and adverse economic factors, the group was able to sustain a gross profit margin of 49 percent.

The group’s cost-to-income ratio reduced from 79 percent in 2021 to 78 percent in 2022.

Owen Omogiafo, group president/CEO, said Transcorp’s ESG initiatives and progress in reducing its carbon footprint, supporting local communities, and promoting diversity, equity, and inclusion.

“Transcorp is about sustainability. We will continue to execute our sustainability strategy of transforming our world to create positive environmental, social, and economic impact across our businesses and communities.

“We are optimistic, and we remain focused on our strategic objectives of fully optimising our existing assets to ensure we consistently and sustainably deliver value for our stakeholders,

“Transcorp aims to continue to focus on the exploration of OPL 281 to realise its integrated gas-to-power strategy, redefine hospitality standards in Nigeria and beyond, and increase its daily average available and generated capacity in Nigeria’s power sector. Transcorp is also launching a world class event centre in Abuja to consolidate its hospitality business, even as it continues its expansion to major cities, including Lagos, where it is developing a 300-key 5-star hotel,” Omogiafo said.