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Elumelu: Power Sector Key to Economic Development, Hampered by Infrastructural Gaps
*Transcorp shareholders approve nomenclature change
James Emejo in Abuja
The Chairman, Transnational Corporation Nigeria Plc, Mr. Tony Elumelu, yesterday said the Nigerian power sector was crucial for the country’s economic transformation and remained a major catalyst for industrialisation.
But he said the sector is currently plagued by infrastructure challenges across the value chain including generation, transmission and distribution as well as metering and revenue collection.
Elumelu at the company’s 16th Annual General Meeting (AGM) in Abuja, added that it was impossible for the country to make any significant progress without addressing challenges in the power sector.
He, however, commended the federal government for the steps taken so far in response to the massive oil theft in the Niger Delta.
Elumelu said, “They’ve responded well so far,” adding that “We hope the motion will lead hopefully to movement.”
He also lauded the government for paying part of its liabilities to the power sector and hoped this would be improved upon going forward.
He said appropriate measures must be taken to ensure that “what is generated can get to the last mile.”
This came as shareholders at the meeting passed a resolution to change the name of the company from Transnational Corporation Nigeria Plc to Transnational Corporation Plc to adequately reflect its posture as an international company.
The investors also approved a two Kobo dividend for every ordinary share of 50 Kobo for the 2021 financial period.
Elumelu, nevertheless, said the corporation recorded “good performance” across all sectors of operations including power and hospitality.
He said Transcorp Power Limited’s revenue improved by 14 per cent from N65.1 billion to N74.3 billion or 70 per cent of total Group revenue.
Profit After Tax (PAT) also increased by 92 per cent from N12 billion to N23.1 billion.
“This excellent return again validated our investment and commitment to this critical sector,” Elumelu said, adding that its investment in Trans Afam Power Limited was further consolidated in the Group financials in 2021, accounting for 15 per cent of revenue and 25 per cent of the Group’s total assets as at December 2021.
He said the hospitality business returned to profitability which further enhanced both the Group and company’s performance during the period under review.
He said for 2022, Transcorp Energy would accelerate minimum work programme activities to retain OPL 281 License in 2022 and achieve planned production in the fourth quarter of 2023.
Among other things, he said, “We will focus on completing the Environmental Impact Assessment (EIA) and appraisal well drilling in 2022, thereby completing minimum work obligations. We will deploy a two-pronged strategy (explore while developing) to fast-track production on December 31, 2023.”
On the Trans Afam Power, the chairman told shareholders that the management would “ramp up available capacity from an average of 116MW to 349MW through the recovery of GT 19 and 20 by Q2, 2022 and Afam Fast Three Power later in the year.
“Also, utilisation rate is expected to improve from 62 per cent to 75 per cent through operational efficiency and process automation.”
Elumelu added that the 2021 financial performance represented a recovery from the COVID-19 pandemic compared to the previous year, especially in the power and hospitality segments.
According to him, hotel occupancy in Transcorp surged by about 90 per cent after spending about $130 million to upgrade the facilities.
He assured shareholders that the group has a strategic investment plan with long-term orientation in the interest and benefit of investors and urged them to continue to investment in Transcorp shares as the future remained bright.
On her part, President/Group Chief Executive, Transcorp, Owen Omogiafo, said 2021 was rewarding and revealed the strength and tenacity of the people.
She said, “Achieving our successful performance despite the uncertainty during the year is a noteworthy achievement. It entails being innovative and resilient, particularly in the challenging times that businesses are facing.
“It is also a delight to know that the year ended 31st December 2021 was indeed a successful year, hence giving us a platform to go forth and do more in the years to come.”
She added, “We look forward to an exciting 2022 as we work collectively towards consolidating, sustaining and surpassing our 2021 performance.”
Omogiafo added that the Transcorp is currently driving a strong integrated energy strategy as well as building for future generations.
Shareholders also satisfaction over the Group’s performance and urged them to do more in subsequent years.