Transnational Corporation (Transcorp) of Nigeria Plc, has said the Conglomerate aims at improving power generation and transforming the nation’s economy.
The President/Group Chief Executive Officer, Transcorp, Owen Omogiafo made this declaration while delivering the financial performance of the company for half-year (H1) ended June 30, 2021.
At a virtual analyst parley on Wednesday Omogiafo said that although the COVID-19 pandemic affected global businesses last year, the positive economic turnaround in economies especially Nigeria has improved the present half-year financial performance, better than it was in prior half-year results.
Breakdown of the Conglomerate’s results showed that its profit after tax stood at N6.5 billion, rising by 713 per cent up from N0.8 billion recorded in June of the previous year.
Its revenue rose by 53 per cent, from N35 billion in June 2020 to N53.3 billion in H1 2021 to contribute to a 689 per cent increase in Profit before tax (PBT) from N0.9 billion in June 2020 to N7.1 billion in June 2021.
Whilst reiterating Conglomerate’s commitment towards producing long-term value and sustainable impact, she revealed that the company is growing impressively in its top-line and bottom-line indices while adding that its entities are also growing.
Speaking on the outlook of the company in H2 2021, Omogiafo said, “We do not plan to rest on our oars. We will continue to sweat our existing assets and explore new frontiers, as we continue to deliver on our purpose of improving lives and transforming Nigeria.”
Corroborating her, the Managing Director, Transcorp Power Limited, Christopher Ezeafulukwe, said the company intends to gradually sustain the increase of power generation over the next 5 years and added that it is targeting 258MegaWatts capacity by December 2021.
“We will continue to engage with key stakeholders to sell our stranded capacity through the West African Power Pool (WAPP), partnerships with Discos, eligible customers, among others.
“We also want to continue to engage with NBET to ensure our invoices are settled on time to improve liquidity,” he said.
The management said it would continue to engage the Federal Government as well as the Nigerian Bulk Electricity Trading Plc (NBET) to ensure its invoices are settled on time to ensure improvement of its liquidity.
Transcorp, with strategic investments in the Power, Hospitality, and Energy sectors increased profit delivery in the second quarter following strong growth in revenue against a general moderation of costs.
The company grew turnover by over N9 billion or 47 percent quarter-on-quarter in the second quarter, well ahead of a 29 percent increase in cost of sales.
The year-on-year position for Transcorp at the end of June 2021 shows that turnover grew by 52 per cent or over N18 billion to close at more than N53 billion. A further increase in momentum expected in the second quarter has been realised and the prospects for the company beating its 2018 turnover high of N104 billion have brightened as well.
The company’s main income line – electricity generation continues to lead revenue growth so far this year. Earnings from the income line rose by 55 per cent year-on-year to about N30 billion at half-year. This contributed close to 56 per cent of the company’s turnover at the end of June 2021.
The second-largest revenue line – capacity charge also maintained a strong growth at roughly 35 per cent year-on-year to close at nearly N15 billion at half-year. Virtually all the other revenue lines of the company recorded strong growths over the review period.
Transcorp also made further progress towards cost moderation in the second quarter, which reinforced the strong growth in revenue to boost profit capacity. A major development in this regard is in respect of input cost, which reversed from growing ahead of turnover in the first quarter to growing below it at half-year.
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