Nigeria’s fourth-best-performing stock last year, Transnational Corporation of Nigeria (Transcorp), reported a two-fold jump in bottom line to N34.1 billion for the 2023 financial, according to its earnings report issued Wednesday.
Energy, which contributed 78 per cent of gross revenue, is the heart of the conglomerate, whose other divisions comprise agro-allied business and hospitality.
Turnover at that flagship subsidiary rose to N151.3 billion from N103.3 billion a year earlier, in turn driving gross revenue, which leapt 44 per cent to N194 billion.
Transcorp financials were released a day after one of its biggest rivals in the energy market, Geregu Power – controlled billionaire magnate Femi Otedola – recorded a 58 per cent jump in post-tax profit to N16.1 billion.
Tony Elumelu, who chairs Transcorp’s directors’ board, is its biggest shareholder, just as he is the chairman and top shareholder of Nigeria’s third biggest bank, United Bank for Africa.
Together with his family, Mr Elumelu holds about 36 per cent stake in Transcorp, by PREMIUM TIMES estimate.
The two billionaire investors were the subject of a top ownership battle at the conglomerate last year, when Mr Otedola started acquiring Transcorp’s shares surreptitiously, at a point overtaking Mr Elumelu.
The Geregu Power chairman would later offer Mr Elumelu N250 billion to acquire Transcorp, which the latter rejected.
Transcorp has a combined installed generating capacity of 2,000 megawatts from three power plants, while Geregu has 972 megawatts.
Transcorp’s finance cost for the year soared by roughly 60 per cent on the back of higher cost of servicing foreign debt after a free fall in the value of naira, following several foreign exchange reforms during the year, worsened the conversion rate of the local currency into dollar.
Profit before tax accelerated 84.5 per cent to N55.9 billion, while profit after tax advanced to N34.1 billion from N16.8 billion.
Transcorp may likely come under funding pressures in the short time as its current liabilities surpassed its current assets by as much as 39.2 per cent or N106.6 billion.
READ ALSO: Transcorp consolidates hold in power sector, acquires 60% stake in AEDC
That could force it to turn to lenders for financing to bridge the gap.
Trade and other receivables, which represent the cash that is due from trade partners, jumped to N140.3 billion from N82.6 billion a year ago.
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Nigeria’s fourth-best-performing stock last year, Transnational Corporation of Nigeria (Transcorp), reported a two-fold jump in bottom line to N34.1 billion for the 2023 financial, according to its earnings report issued Wednesday.
Energy, which contributed 78 per cent of gross revenue, is the heart of the conglomerate, whose other divisions comprise agro-allied business and hospitality.
Turnover at that flagship subsidiary rose to N151.3 billion from N103.3 billion a year earlier, in turn driving gross revenue, which leapt 44 per cent to N194 billion.
Transcorp financials were released a day after one of its biggest rivals in the energy market, Geregu Power – controlled billionaire magnate Femi Otedola – recorded a 58 per cent jump in post-tax profit to N16.1 billion.
Tony Elumelu, who chairs Transcorp’s directors’ board, is its biggest shareholder, just as he is the chairman and top shareholder of Nigeria’s third biggest bank, United Bank for Africa.
Together with his family, Mr Elumelu holds about 36 per cent stake in Transcorp, by PREMIUM TIMES estimate.
The two billionaire investors were the subject of a top ownership battle at the conglomerate last year, when Mr Otedola started acquiring Transcorp’s shares surreptitiously, at a point overtaking Mr Elumelu.
The Geregu Power chairman would later offer Mr Elumelu N250 billion to acquire Transcorp, which the latter rejected.
Transcorp has a combined installed generating capacity of 2,000 megawatts from three power plants, while Geregu has 972 megawatts.
Transcorp’s finance cost for the year soared by roughly 60 per cent on the back of higher cost of servicing foreign debt after a free fall in the value of naira, following several foreign exchange reforms during the year, worsened the conversion rate of the local currency into dollar.
Profit before tax accelerated 84.5 per cent to N55.9 billion, while profit after tax advanced to N34.1 billion from N16.8 billion.
Transcorp may likely come under funding pressures in the short time as its current liabilities surpassed its current assets by as much as 39.2 per cent or N106.6 billion.
READ ALSO: Transcorp consolidates hold in power sector, acquires 60% stake in AEDC
That could force it to turn to lenders for financing to bridge the gap.
Trade and other receivables, which represent the cash that is due from trade partners, jumped to N140.3 billion from N82.6 billion a year ago.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999