Transcorp plans to pay shareholders a dividend of N0.02 per share (equivalent to a total payout of N813 million) for 2021.
Tony Elumelu-backed Transnational Corporation of Nigeria (Transcorp) reported a more-than-five times jump in profit after tax for 2021 as revenue grew to record N111.2 billion, its audited financial statement showed on Monday.
The conglomerate, whose interests encompass power, oil and gas, hospitality and agro-allied business, noted a substantial improvement in earnings from its power and hospitality operations as helping revenue up by 42.6 per cent from a year earlier.
The surge in top-line rested on Transcorp’s foray into development of nuclear power plants for electricity generation through its subsidiary Transcorp Energy last June, the first of its kind in Africa’s biggest economy.
That was seven months after it procured the 966 megawatts Afam Power Plc Afam III Fast Power Limited from the Nigerian government through an outright purchase valued at N105 billion.
A bargain purchase, resulting from acquiring the Afam plants at less their fair market value, contributed N4.5 billion to Transcorp’s earnings pool for the period under review, according to the earnings report.
Profit before tax stood at N28 billion, translating to a rise of 1,640.6 per cent over 2020 figure.
Post-tax profit climbed 528.4 per cent over what the firm reported a year earlier.
Profit margin, implying how much of revenue has turned into profit, stood at 21.4 per cent relative to the 5 per cent posted for the 2020 financial year.
Mr Elumelu, Transcorp’s chairman, also chairs the board of directors of United Bank for Africa, and holds 273.1 million shares directly in Transcorp, 294 million shares indirectly through HH Capital Limited and 274 million indirectly through Heirs Holdings Limited.
Heirs Holdings is in race to buy Shell’s equity stake said to be worth $4 billion in a joint venture with state-owned Nigerian National Petroleum Corporation.
Transcorp’s hotel and hospitality business is listed separately in Lagos with the name Transcorp Hotels Plc.
In a separate statement issued on Monday, Transcorp said it plans to pay shareholders a dividend of N0.02 per share (equivalent to a total payout of N813 million) for 2021.
It paid half of that sum for the preceding financial year.
Transcorp’s shares were quoted at N1.05 per unit on Lagos’ Customs Street at 10:38 West Africa Time on Monday, trading down 5.61 per cent.
Source: https://www.premiumtimesng.com/business/business-news/520196-transcorps-annual-profit-leaps-by-528-as-revenue-crosses-n111-billion.html
