Transnational Corporation of Nigeria Plc says it expects its revenue
to rise from N18bn in 2013 to N289bn by 2018, following the progress
in its business diversification and expansion plan.
The Chief Executive Officer, Transcorp, Mr. Obinna Ufudo, said this on
Monday when the company visited the Nigerian Stock Exchange for a
'Facts behind the figures' presentation to the management of the NSE,
stockbrokers and analysts.
Transcorp had moved on from a loss of N8.88bn in 2007 to a profit
after tax of N1.257bn in 2011. This was improved in 2012 with a PAT of
N2.527bn, and by the end of September 2013, the company declared a
profit before tax of N5.1bn for the third quarter of the year.
Ufudo, whose presentation highlighted the key reasons behind the
company's recent growth and performance in the stock market, explained
that a two-phase turnaround agenda had driven the growth.
According to him, the first phase focused on restructuring and
stabilisation, while the second phase is aimed at business
diversification and expansion.
The company's acquisition of Ughelli Power Plc for $300m and
subsequent increase in output at the plant from 160MW to 286MW fell
under the second phase, he said.
He added that diversification phase of the company's growth plans had
seen its operations spread to the power sector, oil and gas and
agriculture in addition to its hospitality business.
Commenting on the company's return to profitability, he said the
firm's re-organisation of capital to reduce negative reserves of N29bn
to zero had helped in the transformation agenda of the company.
He explained that the resolution of litigations had also helped the
He said, "Till date, we have been able to successfully resolve 10
cases from 16 cases that were outstanding as of 2011. The foregoing
has significantly reduced the contingent liabilities of the company by
over N7.3bn, allowing the management to grow the business."
The Chairman, Transcorp, Mr. Tony Elumelu, said the ultimate goal of
the company was to be globally competitive and to offer investors huge
rewards on their investments.
He said, "Transcorp represents the new Nigeria – dynamic, globally
competitive, transparent and founded on good governance. We promised
our investors that they would reap the rewards of their patience, and
now, we have built a company that is not only sharing the tangible
fruits of our labour, it is also a vehicle for all Nigerians to gain
access to the opportunities that our country offers."
Elumelu explained that the diversification also offered investors an
opportunity to invest in different sectors of the economy.
He said, "Transcorp is one of the few ways through which institutional
investors can obtain diversified access to Nigeria's key economic
sectors, from power and hospitality to oil and gas and agriculture.
Our long-term sustainable investment philosophy remains our ability to
Concerning how the company aims to achieve its revenue target, Ufudo
explained that the expansion drive would play a vital role in making
For instance, he said in 2014, UPP power generation would come on
stream for a full year at estimated capacity of 680MW. In 2015, it
expects to increase generation at the plant to 1,150MW and sell 200
apartments at Hilton Abuja, with different projects expected to be
executed every year till 2018.