FY’2023: Transcorp records N34.1bn profit after tax

TRANSNATIONAL Corporation of Nigeria (Trans Corp) has reported increase in its profit after tax to N34.1 billion for the 2023 financial year

Profit before tax accelerated 84.5 percent to N55.9 billion, while profit after tax advanced to N34.1 billion from N16.8 billion.

In its unaudited financial statement filed with the Nigerian Exchange, the investment company reported that its revenue climbed 44 percent to about N194 billion from N134.721 billion in the comparable year in 2022.

According to the financial statement, energy, which contributed 78 percent of gross revenue, is at the heart of the conglomerate, whose other divisions comprise agro-allied business and hospitality.

Turnover at that flagship subsidiary rose to N151.3 billion from N103.3 billion a year earlier, in turn driving gross revenue, which leapt 44 percent to N194 billion.

Transcorp has a combined installed generating capacity of 2,000 megawatts from three power plants, while Geregu has 972 megawatts.

Transcorp’s finance cost for the year soared by roughly 60 percent on the back of higher cost of servicing foreign debt after a free fall in the value of naira, following several foreign exchange reforms during the year, which worsened the conversion rate of the local currency into dollar.

Transcorp may likely come under funding pressures in the short time as its current liabilities surpassed its current assets by as much as 39.2 percent or N106.6 billion.

Its costs of sales also spiked amidst the accelerating headline inflation rate in Nigeria. Details showed that costs of sales printed much higher at N87.991 billion in 2023, up by more than 18 percent year on year from N68.3 billion in 2022.

Following its overhead charges, operating income came higher by more than 71 percent to settle at N80 billion in financial year 2023 from N46.7 billion 12 months earlier.

Pre-tax profit spiked by about 85 percent to N55.87 billion in 2023 from N30.276 billion in 2022. With a tax expense provision of N21.786 billion, the company’s net income grew more than 102 percent to N34.087 billion from N16.839 billion in 2022.