Transnational Corporation of Nigeria Plc has released its audited financial results for the 2014 financial year, declaring a 120 per cent growth in revenue.
The revenue, which rose from N18.8bn in 2013 to N41.3bn, is the highest revenue generated by the group so far.
The group’s power business, the Transcorp Ughelli Power Limited, and the hospitality subsidiary – Transcorp Hotels Plc – contributed significantly to the revenue growth, according to the group.
The results showed that Transcorp’s gross profit jumped by 92 per cent to N27bn from N14.4bn in 2013, while the group’s operating profit for the year under review was N13.6bn, indicating a 33 per cent increase year-on-year.
A 208 per cent increase in net finance cost from N2.5bn to N7.8bn, mainly from foreign exchange losses and debt service on acquisition finance loan for the Ughelli power plant, however, affected its profit.
Consequently, the group’s pre-tax profit fell by 14 per cent to N7.7bn in the year under review from N9bn in 2013, even as its total assets grew by 14 per cent to N170.8bn from N149.6bn.
The President and Chief Executive Officer, Transcorp, Mr. Emmanuel Nnorom, was quoted in a statement by the group as saying, the performance was impressive despite the challenges the group faced within its operating environment.
He said, “We achieved significant growth in our top line and maintained our margins within acceptable limits, despite the delayed implementation of the Transitional Electricity Market, exchange rate movement and reduced occupancy arriving from security challenges and the viral epidemic in West Africa.
“We are particularly impressed with the performance of our power business, which currently is producing a generating capacity of 610MW, up from 160MW at acquisition in November 1, 2013.”
He added that the group’s ability to outperform its capacity targets agreed at privatisation demonstrated its commitment to excellence and its diversification strategy.
“Going forward in 2015, we expect an even better performance across all our business focus areas, including the anticipated implementation of TEM and an increasing stability in the economy and tourist environment,” he said.
According to him, the group’s new hotels development in Lagos and Port Harcourt are progressing well and its agribusiness division has commenced delivery of juice concentrates to international beverage manufacturers in Nigeria.
He added that with the signing of its production sharing contract by the Nigerian National Petroleum Corporation, Transcorp’s oil and gas business was on course for the drilling of its first well this year.
Transnational Corporation of Nigeria is a publicly quoted conglomerate with a diversified shareholder base of over 300,000 investors.