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Transcorp to launch world class event centre in Abuja, says no plan to list power firm

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Transnational Corporation Nigeria Plc has said that it’s planning to build a world class event centre in the nation’s capital city of Abuja as part the consolidation of its hospitality business in the country.

According to the Group Chief Executive, Owen Omogiafo, the firm is currently expanding its hospitality business to Lagos, Nigeria’s commercial nerve with the development of a 300 key five star hotel.

While speaking with analysts on its Invesstors and analysts conference call on Thursday, the GCEO also highlighted Transcorp’s ESG initiatives and progress in reducing its carbon footprint, supporting local communities, and promoting diversity, equity, and inclusion.

“Transcorp is about sustainability. We will continue to execute our sustainability strategy of transforming our world to create positive environmental, social, and economic impact across our businesses and communities.

“We are optimistic, and we remain focused on our strategic objectives of fully optimizing our existing assets to ensure we consistently and sustainably deliver value for our stakeholders,” he said.

In answering an analyst question on the call, Omogiafo clarified that there are no current plans to list the company’s power business on the stock market.

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Transcorp aims to continue to focus on the exploration of OPL 281 to realize its integrated gas-to-power strategy, redefine hospitality standards in Nigeria and beyond, and increase its daily average available and generated capacity in Nigeria’s power sector.

On his part, the Group’s Chief Financial Officer, Joseph Adegunwa presented a comprehensive overview of the Group’s performance, highlighting key achievements across its portfolio.

In 2022, Transcorp Group sustained its growth trajectory and ended the year with gross earnings of N134.7 billion, a 21 percent increase from N111.2 billion recorded in 2021. This growth was largely driven by the power and hospitality businesses.

Gross profit grew by 21 percent, closing at N66.4 billion in 2022, from N54.8 billion in 2021. Despite facing inflationary pressures and adverse economic factors, the Group was able to sustain a gross profit margin of 49 percent.

The Group’s cost-to-income ratio reduced from 79 percent in 2021 to 78 percent in 2022, demonstrating the Group’s operating efficiencies.

Transcorp ended the year with a PBT of N30.3 billion, an increase from N28 billion in 2021. This impressive performance resulted in an increase to the Company’s asset base, Shareholders’ Funds, and consequently, a 150 percent growth in dividend payment. Under the Elumelu leadership, Transcorp has pursued a consistent policy of, where prudent, rewarding shareholders with a progressive dividend policy.

The Company has declared a N2 billion dividend payment for 2022. In Q1 2023, the Group recorded N32.4 billion in gross earnings, reflecting an improvement from N31 billion, despite facing economic and gas challenges, that affected the power business’s generation capacity. 2022 will be the 5th consecutive year of unbroken dividends payment by Transcorp, since the Elumelu led team assumed leadership of the conglomerate.

Prior to the change in ownership and management in 2011, Transcorp had operated since inception without dividends to its shareholders.

Although an exchange loss recognized on foreign-denominated liabilities impacted the Group’s profitability, Transcorp maintained its revenue growth in Q1 2023. Commenting on the Q1 2023 financial highlights, Adegunwa said, “We are optimistic about a full rebound in Q2 2023, with the increased-generated capacity from our power business and higher occupancy from our hospitality business.”

Transnational Corporation Plc (Transcorp Group) is a publicly quoted company, with a diversified shareholder base of approximately 300,000. Its portfolio comprises strategic investments in the power, hospitality, and oil and gas sectors. Its businesses include Transcorp Hilton Abuja, Transcorp Hotels Calabar, Aura by Transcorp Hotels, Transcorp Power, Transafam Power, and Transcorp Energy.

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