Transcorp records N13.4bn profit after tax in Q3

Transcorp Hotels grows profit by 172%

Transnational Corporation of Nigeria (Transcorp Plc) has posted a N13.467 billion Profit After Tax (PAT) for third-quarter ended September 2021.

The performance represents N11.721 billion growth, compared with N1.746 billion recorded in third quarter of 2020. It also showed a 672.1 per cent year-on-year change.

The group also said its profit before tax during the period stood at N14.127 billion, a N12.107 billion increase from N2.020 billion recorded in the same quarter in 2020, with a 599.5 per cent Y-o-Y change.

The group’s gross earnings and gross profit stood at N85.588 billion and N39.366 billion, respectively, compared to N54.378 billion and N22.723 billion recorded as of September 30, 2020.

Speaking during the group’s financial performance report- Transcorp Q3 2021 Analyst Presentation and Investor Call’, President/Group CEO, Transcorp Plc, Owen Omogiafo said: “Transcorp Plc remains a diversified conglomerate with commanding presence in the power, oil & gas and hospitality sectors.

“We also have strong financial performance with an aggressive growth agenda. We are deeply rooted values are the 3Es of execution, enterprise and excellence. Nigerian economy showing a sustained positive growth over the last four quarters since the recession witnessed in 2020 although below the lower than 5.01 per cent recorded in second quarter of 2021 by 0.98 per cent points, “she added.

Read:  Flour Mills annual profit rises 127%, realises N25.7bn

Its 2021 cost-to-income ratio stood at 44 per cent, a 14 per cent decline in 58 per cent for 2020. Post-tax return on equity and post-tax return on assets for 2021 saw an increase from 1.57 per cent and 0.54 per cent recorded in 2020 to 11.16 per cent and 3.88 per cent, respectively.

Read:  Wema Bank gets recognition for supporting SMEs

With key investments in the hospitality, energy and power sectors, the group’s hospitality business recorded a 115 per cent increase in revenue from N6.791 billion in Q3, 2020 to N14.601 billion in Q3 2021. Its gross profit saw a 149 per cent increase from N4.342 billion recorded in Q3, 2020 to N10.829 billion recorded in 2021 for the same period.

For its hospitality business, the group proposes to construct Transcorp Hotels in Port Harcourt by 2024; build a 3,000 banquet-seating capacity event centre in Abuja in 2022; build a lifestyle center in Ikoyi; upgrade of Transcorp Hotels, Calabar and refurbishment of its key food and beverage outlets by 2022.

In its power segment review, Transcorp said for its Q4 2021 target, 575 MW average capacity was generated for its Transcorp Power Limited and 102 MW for its Trans Afam Power Limited as against the 677 MW and 166 MW average available capacity.

Read:  Dangote maintains rank as Forbes’ richest man in Africa

“The current available capacity for TPL and TAPL are 539MW and 120MW, respectively. Our plants are undergoing significant upgrades and repairs that will significantly increase the available capacity by December 2021. Given the gap in the sector and the increasing demand for electricity, the power sector remains an attractive investment choice,” the group said.

Haven done its preliminary assessment in 2021 as contained in its OPL 281 notional development plan, the group said the appraisal and field development strategy would take place between 2022 and 2023 while the completion of minimum work obligations and execution of plans would commence from 2024.


Related posts

First Bank kicks off CR&S week in 7 countries


CBN sacks First Bank, FBN Holdings directors, retains Adeduntan as MD


UK snack brand announces entry into Nigeria


FirstBank, CDC/BII to support women, SMEs with $100m credit facility


Stanbic IBTC appoints new non-executive director


Samsung lauds SIMS Nigeria on 28th anniversary celebration


Leave a Comment