Transnational Corporation Plc (Transcorp) has released its financial results for the full year ended December 31, 2022, demonstrating significant improvements in its major income lines.
The conglomerate, with investments in the hospitality, power, and oil and gas sectors, recorded growth in its profit before tax, which rose by 8 percent to N30.3 billion compared to N27.9 billion in December 2021.
The conglomerate saw a 7 percent increase in its power investments, despite the challenges faced in the year from issues with gas supply and the diminished oil and gas production in the country in 2022.
The hospitality sector showed a very strong performance, achieving a record revenue of $31.4 billion and profit before tax of N4.5 billion. These achievements have been made within a challenging operating environment characterized by foreign exchange volatility, a high cost of production, and rising inflation.
It’s worth noting that the Group’s total revenue and operating profit also experienced significant growth, rising by 21 percent from N111.2 billion in December 2021 to N134.7 billion in the period under review and from N38.5 billion in December 2021 to N46.7 billion in December 2022, respectively.
Operating expenses for the year ended December 2022 stood at N23.4 billion, representing an increase of 24 percent compared to N18.8 billion recorded in the same period of 2021.
The results showed that total assets increased by 6 percent from N416 billion in December 2021 to N442.7 billion in December 2022, primarily due to additional investment in the recovery of the power plants and investments in financial assets. Shareholders’ funds rose to N154.8 billion, representing a 6 percent year-on-year increase from the N146.3 billion recorded in the same period of 2021.
Commenting on the results, the President and Group Chief Executive Officer, Owen Omogiafo, attributed the success of the results to the robustness of the company’s business model, which remains prudent and nimble across its operations.
She said, “As we reflect on our achievements, we take pride in the improved performance of our group.” Looking to the future, we will continue to focus on efficiency and cost optimization, ensuring that we remain agile and responsive to the market while delivering value to our stakeholders.”
Transcorp remains committed to its transformation agenda while sustaining growth and maintaining a continuous drive to deliver long-term value to its shareholders.