Enterprise Television- Shareholders Applaud Transcorp’s Return To Profit
Shareholders have applauded the board and management of Transitional Corporation of Nigeria (Transcorp) for returning the company to profitability and paying dividend for the year ended December 31, 2017.
They also approved the total dividend of N812.96 million, representing two kobo per share for the year under review.
Speaking at the company’s annual general meeting held in Lagos, Monday, the chairman of New Dimension Shareholders Association, Mr. Patrick Ajudua commended the management for returning the company to profitability, saying that the shareholders are pleased with the performance of the company as it not only post profit but paid dividend for the period.
He tasked management not to relent in ensuring that the profit recorded in the 2017 financial year is surpassed in the coming years.
Speaking to shareholders, the chairman of Transcorp, Mr. Tony Elumelu said due to the strategic initiatives implemented in 2017, Transcorp delivered exceptional financial results, which has laid a firm foundation for its performance in the years ahead.
Elumelu stated that “achieving excellence in the execution of our identified strategic imperatives remains critical to our success as an organisation.
“This continues to properly position us for our manifold opportunities in our economy and adequately insulate us from any challenges within our operating environment.”
Under its sub-sector, Transcorp Power Limited, Elumelu said, “we closed the year 2017 with increase in available capacity from 505MW to 701MW.
He added that in 2018, the company is poised to increase the available capacity to above 800MW, through the recovery of additional capacity of our power generating assets, saying that this keeps us on track to achieve long-term target to be responsible for generation of 25 per cent of the power consumed in the nation.
According to him, we will continue to form strategic partnership with gas suppliers and other stakeholders in order to ensure adequacy of the quality and quantity of gas supply.
For Transcorp Hotels, he pointed out that the ongoing upgrade to Transcorp Hilton Abuja is expected to be completed by the middle of 2018.
The chairman stated that “we have successfully obtained NNPC’s approval for extension of the Phase 1 Exploration Period for OPL 281 PSC. This has given us additional time to fulfil our work commitments, including drilling of the appraisal wells, under the first Phase of the PSC.
“We are positive that further engagement with investors will lead to effective execution of OPL 281work obligations, as approved under the PSC.”
Also, the president and CEO of Transcorp, Adim Jibunoh said that the company gross earnings realised for the Group in 2017 was N80.3 billion as opposed to N59.4 billion in 2016, saying that the growth of 35 per cent was mainly due to increase in power generation by TPL
Jibunoh added that cost of sales increased from N 29.26 billion in 2016 to N 43.86 billion in 2017 representing 50 per cent year-on-year increase.
He explained that this is due to increase in cost of gas for power generation, while gross profit for the Group was N36.4 billion, an increase of 20 per cent from N 30.2 billion posted in 2016. Profit after tax stood at N 10.6 billion compared to the loss after tax of N 1.1 billion in 2016.
He stated that as the year 2018 is gradually unfolding, the board and management remain committed to ensuring that Transcorp achieves strong financial results.
“We will continue to be driven by our values of execution, enterprises and excellence and will ensure optimal maximisation of opportunities in our operating sectors, and indeed other sectors with openings for opportunistic investments.”