Transcorp Gets Discharge Certificate, Recommits To Hospitality, Power Growth

Having satisfied the requirements to end post-privatisation monitoring, Transnational Corporation Plc, was issued a discharge I’m certificate.

The requirements include available capacity, capital expenditure, human resources, health, safety and environment and corporate social responsibility.

Speaking at the discharge certificate presentation event, director-general, Bureau of Public Enterprise, Alex Okoh, explained the necessity of the certificate, the level of evaluation and inspection involved, highlighting the 227 per cent growth in generation capacity under Transcorp Power’s management in the last decade.

According to Okoh, the company has achieved an available capacity of 680.8 megawatts, which surpassed the minimum performance target of 670 megawatts (within the period under evaluation). Capital expenditure totalling N58.6 billion was the covenant established for phases one and two of the post-acquisition plan, while actual investments made by the current investor were in the sum of N83.85 billion. All the agreed benchmarks on human resources, health, safety and environment and corporate social responsibility have also been achieved.

“In the same month, Transcorp Group through its other power subsidiary, Transafam Limited in Rivers State, also commissioned its 240MW installed capacity, Afam three fast power, comprising eight trailer-mounted gas turbines of 30 megawatts each, bringing the power generating capacity of the Group to a total of 1,938MW (Transcorp Power 972MW, and Transafam Power 966MW). This accounts for 15.5 per cent of the total installed capacity in Nigeria.”

President and Group CEO, Transcorp, Dr. Owen Omogiafo noted that the Nigerian power market is expected to register a CAGR of approximately 13 per cent from 2022-2027.

She said that the Nigerian power market is largely driven by favourable government policies and a growing inclination toward privatization of the power sector, which can draw more investment in the sector, saying that “with the new leadership in Nigeria showing a pro-private sector stance, there is more opportunity for the growth of the power sector across the value chain and Transcorp’s power subsidiaries are well positioned to exploit available opportunities for growth.

On hospitality industry outlook, she stated that “the hotel market revenue in Africa is expected to reach $13.80 billion by 2027, with an average Annual Growth Rate of 8.68 per cent over the next five years. Transcorp Hotels is growing impressively in line with this outlook.

It added that “the hospitality brand is developing a 5,000-capacity convention centre in Abuja, to be open in Q1, 2024. Preliminary works are also ongoing for a 300-room 5-star hotel in Lagos. With Aura by Transcorp Hotels, the online platform for booking homes, hotels, and experiences, Transcorp Hotels has fast-tracked its expansion plans, with hotels and apartments from all parts of Nigeria now listed on the platform, and Transcorp Hotels now boasting over 5,000 rooms under management through the platform.”

The Group explained that the positive outlook in the sectors where Transcorp Group operate is triggering increasing demand for the Transcorp stock. Performance over the past four years has been impressive and the growth trend is sign of better.

Meanwhile, on the Group financial performance in the last three years showed that Transcorp grew it revenue from N76.35 billion in 2019 to N135 billion in 2022, representing a growth of 76.82 per cent. Also, its profit for the period amounted to N7.90 billion in 2019, N12 billion in 2020, N23.1 billion in 2021 and N30.2 billion in 2022.

As at July 10, the Company share price recorded a year-on-year growth of 233.06 per cent to trade at N4.13 per share.