Transnational Corporation of Nigeria (TransCorp) has lauded the federal government’s economy recovery policies as measures that will not only boost the company’s fortunes, but that of its stakeholders and the general economic recovery.
The policy direction, which includes increased gas supply to power companies, N701 billion Nigerian Bulk Energy Traders guarantee fund (NBET), and other measures to clear backlog of outstanding dues on power supplied, targets raising liquidity in the power sector and the economy at large.
Recently published 2016 financial year result by Transcorp showed that, irrespective of tough macro and micro economic environment, TransCorp closed the year on a positive note, driven by revenue growth of 46 per cent which is even more impressive considering the fact that its power business contributed 75 per cent of Transcorp’s earnings.
The power sector of the nation’s economy was the most challenged, as gas supply to run their operations was at a point reduced to zero level, due to pipe- line vandalization., illiquidity, forex issues and Naira devaluation.
President/CEO Transcorp Plc, Emmanuel Nnorom revealed in Lagos recently, shortly after the company’s release of its 2016 audited financial statement that Transcorp Subsidiaries continued to gather momentum and would in 2017 make new inroads into new market frontiers to further enhance market share.
Nnorom said that the federal government’s renewed commitment to the power sector with the recent N700bn guarantee to NBET, signals a new wave of confidence booster and great lift to the collective interest and aspirations of power sector stakeholders.
He said “The first thing international investors want to know is how we get paid for the power we generate. In 2016 that question had become near impossible to answer. The undeniable fact is that if we truly intend to develop Nigeria we must first develop the power sector. This recent move by the federal government appears to be a step in the right direction.”
According to him, three factors that proved most challenging for Transcorp Power Limited in 2016 were, gas supply, a weak and illiquidity issues worsened by roughly N50bn owed to Transcorp Power Limited by NBET as at the end of 2016.
2017, he said started on a promising note as the Federal government so far in the first quarter has put in place ,measures that have started yielding positive results to lift the fortunes of the energy sector and the overall economy.
Some of the noticeable results of the FG’s new economy recovery policy, include remarkable increase in supply and new positive pricing regime of the Naira against the dollar. “As the Naira regains its value it instantly improves the bottom line of Transcorp Plc as foreign exchange loans are solely responsible for reported loss. As long as 2017 maintains the positive momentum it has started with, the future looks bright for Transcorp Plc. and its investors,” Nnorom said.
Meanwhile, Transcorp Hotels Plc. shareholders will be pleased as they converge for the company’s proposed Annual General Meeting (AGM) later this month to among other things, approve a dividend proposal of N0.40 per share.
Transcorp Hotels Plc, a subsidiary of Transcorp Plc went through the rough terrain of 2016 to achieve a N5bn profit against all odds and made a dividend proposal of N.40, to be laid before shareholders at the AGM.