Q3 2021: Transcorp Delivers Significant Increase in PBT To N14.13bn

Kayode Tokede

Nigeria’s leading and largest listed diversified conglomerate, Transnational Corporation of Nigeria Plc (Transcorp) has released its unaudited results for the third quarter (Q3) ended September 30, 2021, indicating sustained growth in 2021 as seen in the first two quarters of year.

With strategic investments in the Power, Hospitality, and Energy sectors, the conglomerate recorded a profit after tax of N13.5billion, rising by 617per cent up from N1.75billion recorded in the previous year.

Transcorp on the Nigerian Exchange Limited (NGX) also announced a 599.5 per cent increase in profit before tax to N14.13billion in Q3 2021 from N2.02billion reported in Q3 2020.

Other key highlights of the results that contributed to growth in profit are 57 per cent increase in revenue to N85.6billion in Q3 2021 from N54.4billion reported in Q3 2020, while net finance cost dropped by 3.3 per cent to close Q 3 2021 at N11.29billion from N11.68billion reported in Q3 2020.

Hospitality subsidiary, Transcorp Hotels, returns to profitability amidst the Covid-19 pandemic in the period under review. Transcorp Hotels profit closed the quarter under review at N745.09million from a loss of N5.6billion reported in prior quarter.

The hospitality’s revenue grew significantly by 115 per cent to N14.6billion in Q3 2021 from N6.79billion to contribute to profit.

Transcorp Hotels also recorded decline in finance cost to N3.09billion in Q3 2021 from N4/45billion in Q3 2020 to contribute to positive growth in profit.

President/Group CEO of Transcorp, Mrs. Owen Omogiafo in a statement said: “the results reflect the continued commitment by the group to improve performance across all the sectors in which we operate.

“Our power business increased by 49per cent year on year, while our hospitality business increased by 115per cent.”

Omogiafo indicated that the company intends to complete the year with another quarter of excellent year-over-year growth, thanks to its scalability and sustainability strategy.

Omogiafo said, “Our outlook for the rest of the year remains positive despite some macro-economic issues. We are particularly excited by the performance of our Hospitality business and its recovery following the impact of the Covid pandemic.

“We have remained on track regarding our capacity recovery plan in our Power business and despite the systemic challenges in the Power sector, Transcorp remains a strong contributor to the power generated in the country.

“We will continue to drive operational efficiency and focused on delivering value to all stakeholders as we work towards building a long-lasting institution that would deliver on our purpose of Improving Lives and Transforming Nigeria.”