…To Complete Transcorp Hotel Ikoyi in 4yrs
…Gets NSE’s Encomiums On Early Result Filing
Transnational Corporation of Nigeria Plc. (Transcorp), a conglomerate with subsidiaries in the hospitality and Power sector, has assured the investing publics of its continued drive to give good return on investment, this it said is due to the management efficiency that has continued to drive its growth and operations.
Besides, the Transcorp management has douse the rumours making the rounds that the government is determined to revoke oil block licenses given to private companies in the domestic economy. This, it explained that the company has a 25 years sharing product contract with NNPC, and has just done 4 year.
Addressing the capital market community on the Lagos floor of the Nigerian Stock Exchange (NSE) on Tuesday, Transcorp President/CEO, Mr. Valentine Ozigbo said the conglomerate is poised that ever before to embark on increased market coverage, new revenue sources, increased revenues and portfolio optimisation to the delights of its investors.
To this end, he said “We will advance tourism to the highest level, even outside the shore of Nigeria. To expand available capacity to 2500MW. We will have Oil & Gas contributing 20 percent to our bottom-line between 2019 and 2020 financial year ending. We will engage in Agric business at the appropriate level and time. Renewable Energy is another priority area that is being looked.
On the strategic outlook of the company for 2019, Mr. Ozigbo who expressed some contraptions in the economy, said for the hospitality business, the conglomerate has set out its agenda to include, target effective higher occupancy rate, maintain differential level of service excellence, leverage upside (traffic & pricing) from pre-election activities and conclusion of upgrade, introduction of spa and increase meeting facilities.
“Improving service and financial performance, continue cost management initiatives and aggressive marketing aligned with competitive pricing, secure final approval and commence construction of Transcorp Hotels Ikoyi next year and in four years operations will commence.
For the Power and Oil arm of its businesses’ the Chief Executive Officer said “the conglomerate is targeting an average of 632MV available capacity and generated power of 538MV. To deepen our play in existing businesses and expand into Africa. Commence exploratory drilling activities”, he added.
In the financial highlight for the FY 2018 results for the period ended December 31st, 2018, the conglomerate saw a 30% increase in its revenue, driven by an increase in the revenues of two of its major & active subsidiaries, Transcorp Hotels Plc (up 25.87%y/y to ₦17.42bn) & Transcorp Power Limited (up 30.55%y/y to ₦86.74bn) in 2018.
Despite the rise in Cost of Sales and General & Administrative Expenses, Profit Before Tax (PBT) surged by 82.05%y/y to ₦22.40bn while Profit After Tax (PAT) climbed by 94.46%y/y to ₦20.63bn.
The firms Return on Asset (ROA) and Return on Equity (ROE) both improved significantly to 6.97% and 19.6% respectively in FY 2018 from 3.7% and 11.1% the previous year. 45% of the firm’s PAT (₦9.31bn) goes to the Equity holders in the parent company, while 55% (₦11.31bn) goes to non-controlling interest.
The firm’s EPS for the equity shareholders stands at 23Kobo, a 94.46% increase compared to the preceding year. A dividend of 3kobo for FY 2018 has been declared to be paid on February 28th, 2019.
Meanwhile, the Chief Executive Officer of the NSE, Mr. Oscar Onyema has applauded the company’s adherence to the rule of the stock market in making its financial statement readily available to the investing public.
Oscar who gave a thumb-up to the company’s continued financial performance and creating value, on return on investment to shareholders, advised the company to leverage on the stock market for capital formation and business expansion as this will further aid its transformational policy to grow and deepen the market for both local and international investors.