Transcorp: Power output buoyed N4.2bn Q2 PAT—Jibunoh
Increased power generation by Transcorp’s Ugheli power plant, is one of the major factors that lifted the Transnational Corporation of Nigeria (TransCcorp) Plc Q2 2017 financial result.
President and Chief Executive Officer, Transcorp Plc, Mr. Adim Jibunoh disclosed this in his reaction to the company’s remarkable 2017 second quarter result saying that the company’s performance, which highlighted significant recovery from the financial year 2016, was lifted by commitment to deliver value to stakeholders.
Transcorp Q2 2017 results showed significant growth in key financial indicators, as its Profit After Tax (PAT) grew to N4.2billion for the half-year ended 30th June, 2017, translating into 134 per cent growth, compared to N12.19bn loss recorded in the corresponding period in 2016.
Appraising the result, Jibunoh said, “Our results show continued growth and a substantial step-up in profitability despite the volatile economic environment.
It was achieved largely through increased power output, following improved gas supply. Our power plant, Ughelli Transcorp Power Company, has consistently ranked as the number one power producer, contributing an average of between 13% -15% of total power exported to the national grid during the 2nd quarter of 2017,”
He said that Transcorp Plc is on track for strong performance in the third quarter of 2017, as it has already initiated the process of enhancing the available capacity of the power generating plant from 620MW to over 720MW to take advantage of improving gas supply.
“In addition, improvements in general economic activity in Abuja and return to operations of the newly upgraded rooms at the Transcorp Hilton Hotels Abuja, will boost occupancy and top line performance for Transcorp Hotels in the 2nd half of 2017.
These changes are keeping us responsive to fast changing consumer trends and accelerating our drive to a stronger financial performance in the second half of the year. We see this as a proven way of delivering long-term shareholder value,”
The result showed that, the conglomerate achieved the impressive growth in profit from a total comprehensive income of N6.22bn, a 285 per cent growth from the loss of N11.50bn recorded in the second quarter of 2016.
While the company’s total assets capped at N264bn for the period under review from N232bn attained as at December 31st, 2016, the shareholders’ fund grew to N93bn, up from N86bn as at December, 2016.
Transcorp attributed the enhanced earnings and profits to improved production in its power business, improvement of the economic climate, which has impacted positively on the operations of its hotel business, among other positive indicators.
