Transcorp Group promises impressive returns on improved power assets, others

The Transnational Corporation Group has promised to deliver good returns to shareholders and other stakeholders, saying that its massive investments in power generation, existing assets in hospitality industry, and other assets across various operating segments will ensure consistent returns on investment all things being equal.

In a joint presentation of “Facts Behind the Figures” to capital market operators at the trading floor of Nigerian Exchange in Lagos on Tuesday, the Group consisting of Transnational Corporation Plc and Transcorp Hotel Plc said the company’s overall strategic objective is to fully optimize its existing assets to ensure it consistently delivers value and high returns to stakeholders.

The Transcorp Group team presentation led by the President, Mrs Owen Omogiafo, cited increased generation of power by one of its subsidiaries, Transcorp Power Limited, stressing that the company targets to further increase Average Available Capacity to 690 MW, above this year’s target generating capacity of 553 MW.

“We successfully increased and maintained the available plant capacity from 48MW at the time of takeover to 188MW with minimum CAPEX requirements between time of administrative handover in March 2021 and September 2022,” the Group President told stockbrokers.

Going forward, she highlighted efforts to improve performance of otherwise non-operational power generation facility, citing the commissioning of GT20 with an additional capacity of 138MW in September, as well as gas supply facilities.

She said “We revived the GT20 which has been non-operational for 15 years; and our execution of a gas supply agreement with AccuGas and HHOG, discussion with other gas supply channels to ensure we have a steady gas supply are part of our strategies to deliver impressive returns. With the improvement in installed capacity and gas supply, we are looking forward to finishing strong in 2022 and a solid start in 2023.”

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On Transcorp Hotel Plc, the Managing Director and Chief Executive Officer, Mrs. Dupe Olusola, said the company rose from the grave impact of COVID-19 pandemic on hospitality industry, their flagship business, to deliver consistent profits in the three quarters of 2022.

She said that despite ravaging inflation, foreign exchange volatilities and insecurities, the management has ensured maximum efficiency and consistently delivered superior services to guests, maximised revenue and creatively explored ways to optimise key business segments to drive consistent growth.

According to her “Our key focus will be a continued investment in innovation that allows us to be dynamic and agile whilst delivering superior offerings and service,” adding that the Ikoyi-Lagos branch of Transcorp Hotel would come into operation by 2027 to add more value to their earnings.

She expressed hope that that company would continue to surpass industry benchmarks and targets across key performance indicators, stressing that the 2022 strategic target for Transcorp Hilton Abuja is pegged at 73 per cent, while that of Transcorp Hotels Calabar at 53 per cent.

Despite the extremely challenging business environment, the conglomerate with investments in the hospitality, power and oil & gas sectors, recorded impressive growth in its profit after tax which rose by 41.4 percent to N19 billion up from N13.3 billion recorded the previous year in September 2021; while profit before tax grew by 47.7 percent to ₦‎20.9 billion in September 2022, higher than ₦‎14.1 billion recorded in the similar period of 2021.

Operating Income also grew by 14.5 percent from N‎27.5 billion in September 2021 to N31.5 billion in September 2022, while operating expenses for the quarter ended September 2022, stood at N‎16.0 billion, representing an increase of 30.9 percent compared to N‎12.2 billion recorded in the same period of 2021.

Fielding question on the company’s free float deficit, the Group President, Mrs Omogiafo promised that going forward part of Transcorp Hotels’ focus will be to achieve the required 20 percent issued shares free float percentage and continuous quarterly engagement with capital market community and investors showcasing its business initiatives and plans.

“We continue to build stakeholder interest through product innovation, good corporate governance practices, and awards to ensure strong patronage and buy when we do go to the market,” Mrs Omogiafo, the Group President promised.