Transnational Corporation Plc is a leading, listed African conglomerate, with strategic investments in the power, hospitality, and energy sectors. Driven by its mission to improve lives and transform Africa, Transcorp has built a longstanding reputation for sector transformation, operational excellence, and exceptional financial performance, delivering value to its shareholders.
Transcorp is the owner of the iconic Transcorp Hilton Abuja and, through its power plants in Delta State and Rivers State, accounts for about 18 percent of Nigeria’s power generation capacity.
Board/management
Tony Elumelu, one of Africa’s leading investors and philanthropists, leads the 12-member board of Nigeria’s largest quoted conglomerate, Transcorp, whose subsidiaries include Transcorp Power, one of the leading producers of electricity in Nigeria and Transcorp Hotels Plc, Nigeria’s foremost hospitality brand. He is the Founder and Chairman of Heirs Oil & Gas, an upstream oil and gas company, whose assets include Nigerian oil block OML17, with a current production capacity of 50,000 barrels of oil equivalent per day and 2P reserves of 1.2 billion barrels of oil equivalent, with an additional 1 billion barrels of oil equivalent resources of further exploration potential. Heirs Oil & Gas is committed to creating resource based added value on the African continent.
Dr (Mrs.) Owen Omogiafo is the President and Group CEO of Transnational Corporation Plc and she heads the management team.
Subsidiaries
.Transcorp Power Plc
.Transcorp Hotels Plc
.Transcorp Energy Limited
.Transafam Power Limited
Highlight of Transcorp Group results
Transnational Corporation Plc announced impressive Q1 financial results for the period ended March 31, 2024. In its Q1 2024 unaudited results, Transcorp reported significant year-on-year growth, with revenue rising to N88.6 billion from N32.4 billion in 2023, representing a 173 percent increase. The impressive results are largely driven by a remarkable 209% year-on-year revenue growth within the power business, highlighting significant strategic progress as part of Transcorp Group’s implementation of its integrated power strategy. The hospitality business recorded a 68 percent year-on-year growth in revenue, driven by an increase in occupancy rate from 75 percent to 82 percent compared to the previous year. The results show substantial growth across all financial indicators, reinforcing its market leadership and strategic positioning.
“Despite the challenges, we achieved growth across all major indices, focusing on operational efficiency at both our power plants, and maximising opportunities within our hospitality business, showing our ability to adapt and succeed in changing markets”
Q1 2024 revenue was N88.6 billion, a significant increase of 173 percent, compared to Q1 2023.
Operating income increased by 479 percent, from N8.5 billion in Q1 2023 to N49.1 billion in Q1 2024.
Operating expenses saw an increase of 40 percent year on year to N8.2 billion in Q1 2024, reflecting the impact of inflation and cost of operations.
Net finance cost increased by 14 percent to N3.7 billion in 2024 from N3.2 billion in 2023 due to a slightly higher interest rate review in line with MPR.
Profit before tax from ordinary business of the Group surged by 1,110 percent, amounting to N34.7 billion in Q1 2024, compared to N2.9 billion in Q1 2023 in the same period last year.
Profit before tax inclusive of extra ordinary income was N45.7 billion in 2024 compared to N2.9 billion in 2023.
The Group recorded extra ordinary income of N11 billion during the period from the realised gain from the sale of shares.
Profit after Tax including the extra ordinary income improved 1,832 percent year-on-year to N35.9 billion in Q1 2024, compared to N1.9 billion in Q1 2023 in the same period last year.
On the balance sheet, total assets grew by 8.3 percent, from N530 billion in December 2023 to N574 billion in Q1 2024 due to the increase in operational activities.
Shareholders’ funds
Shareholders’ funds increased by 20 percent from N187billion in December 2023 to N224 billion at the end of Q1 2024 due to profit accreted to retained earnings.
Share reconstruction plan
Transnational Corporation Plc has proposed a reduction in its number of shares in issue through a share capital reconstruction.
As part of the reconstruction, the total number of issued ordinary shares of Transcorp would be reduced by consolidating the issued shares at a ratio of 1 for 4.
Transcorp will cancel three out of every four ordinary shares held by its shareholders, resulting in the cancellation of 30,485,992,719 ordinary issued shares of N0.50 each and would lead to the reduction of the issued share capital to N5.08bn ordinary shares of N0.50.
Currently, the company’s share capital is N20.32bn comprising 40,647,990,293 ordinary shares of N0.50.
Transcorp added that the reconstruction would be in the best interest of the shareholders and was expected to bring the capital structure to a position that would enable the company to accommodate the various funding sources available soon.
“Effect a proportionate increase in the company’s share price so that the capitalisation and percentage holding of each shareholding will remain unaltered; and improve the outlook of the company’s earnings per share and dividend per share given that the EPS/DPS will then be derived from a lower outstanding share base,” it noted.
Management comments
In response to the results, Dr. Owen Omogiafo, President/Group Chief Executive Officer of Transcorp, commented, “Our Q1 2024 results demonstrate Transcorp Group’s resilience and commitment to excellence. Despite the challenges, we achieved growth across all major indices, focusing on operational efficiency at both our power plants, and maximising opportunities within our hospitality business, showing our ability to adapt and succeed in changing markets. We will continue to deliver sustainable growth, operational efficiency, and value for our shareholders.” This robust achievement is a further demonstration of the Group’s strategic focus and effective execution. Transcorp is dedicated to its transformation agenda, emphasising sustained growth and a relentless pursuit of long-term value for shareholders.
Red flags
*Operating expenses increased by 40 percent year on year.
*Net finance cost increased by 14 percent to N3.7 billion.
Green flags
1. Power business boosts revenue by 209 percent year-on-year.
2. Shareholders’ funds increased by 20 percent from N187billion in December 2023 to N224 billion.
3. Profit after Tax including the extra ordinary income improved 1,832 percent year-on-year.
