Transnational Corporation Plc (Transcorp Group) has reported exceptional financial results for the fiscal year ending December 31, 2024, demonstrating robust growth across all major financial metrics, and setting the tone for corporate earnings report this year. The conglomerate’s revenue surged by 107 percent, reaching ₦408 billion, up from ₦197 billion in the previous year. This significant increase is attributed to strategic investments and enhanced operational efficiencies across its diverse business sectors. Operating income experienced substantial growth, rising by 83 percent to ₦149 billion from ₦81.4 billion in 2023. However, operating expenses also saw a notable increase of 105 percent, amounting to ₦62.8 billion, primarily due to inflationary pressures and strategic investments aimed at expanding operational capacity.
A significant factor contributing to this rise in expenses was the elevated cost of natural gas and fuel within Transcorp’s power generation operations. In the first half of 2024, the cost of natural gas and fuel escalated by 203 percent year-on-year, reaching ₦118.4 billion, up from ₦39 billion in the same period of 2023. This sharp rise was linked to increased power generation capacity, which, while boosting revenue, also led to higher operational costs. As a result, Transcorp Power’s operating margin declined by 700 basis points, dropping to 36 percent from 43 percent in the previous year. Additionally, the company’s overall operating expenses were impacted by inflationary trends affecting various cost components. In the first half of 2024, operating expenses increased by 50% to ₦21.2 billion, reflecting the broader inflationary environment and the rising costs of operations.
Transcorp Energy Limited, a subsidiary of Transnational Corporation Plc (Transcorp), is actively pursuing renewable energy initiatives to diversify Nigeria’s energy mix. The company has expressed intentions to develop a utility-scale solar photovoltaic (PV) plant, signalling a strategic move into sustainable energy sources. In alignment with these ambitions, Transcorp Power Plc has partnered with Covenant University and ENGIE Group to explore solar energy solutions, underscoring its commitment to integrating renewable energy into its portfolio.
Furthermore, Transcorp has demonstrated a commitment to enhancing Nigeria’s domestic energy value chain through its investments in OPL28 and its renewable energy drive via Transcorp Energy Limited. These initiatives reflect Transcorp’s dedication to expanding its renewable energy investments, particularly in solar power, to support Nigeria’s transition to a more sustainable energy future.
A major highlight of Transcorp’s financial performance is the 45 percent reduction in net finance costs, which decreased to ₦12.4 billion. This improvement is largely due to the complete repayment of foreign currency loans, reflecting the company’s effective financial management strategies. The company’s total assets grew by 42 percent, reaching ₦751.6 billion, while shareholders’ funds increased by 45 percent to ₦271.7 billion, up from ₦187.3 billion in the previous year. This growth in shareholders’ equity is primarily driven by profit accretion to retained earnings, underscoring Transcorp’s commitment to enhancing shareholder value. Considering these impressive results, Transcorp has declared a full-year dividend of ₦10.1 billion, translating to ₦1.00 per share, reflecting the company’s dedication to rewarding its shareholders.
Dr. Owen D. Omogiafo, President and Group CEO of Transcorp, emphasized that the company’s performance underscores its commitment to sustainable value creation and growth across Nigeria’s power, hospitality, and energy sectors. She noted that Transcorp aims to strengthen its position and explore new sectors that align with its mission of improving lives and transforming Africa. Transcorp’s power subsidiaries, Transcorp Power Plc and TransAfam Power Limited, currently provide about 20 percent of Nigeria’s installed power capacity, highlighting the company’s significant role in the nation’s energy sector. Additionally, Transcorp Hotels Plc, the hospitality arm of the conglomerate, reported a revenue of ₦70.13 billion for the 2024 financial year, marking a 69 percent increase from ₦41.57 billion in the previous year. This growth is attributed to improved occupancy rates and enhanced service offerings.
These results further reinforce Transcorp’s strategic positioning and leadership in its core industries, signalling a strong outlook for continued growth and expansion. The company’s ability to navigate economic challenges while delivering exceptional financial performance underscores its resilience and commitment to its stakeholders.
Furthermore, Transcorp Hilton Abuja has significantly bolstered the growth of Transcorp Hotels Plc hospitality segment. In the first half of 2024, the company’s occupancy rate rose to 81%, up from 77 percent in the same period in 2023. This increase contributed to a 61% revenue growth, reaching ₦29.7 billion. Additionally, Revenue per Available Room (RevPAR) surged by 57 percent to ₦162,999, compared to ₦103,646 in the previous year. These metrics underscore the hotel’s enhanced performance and its pivotal role in the company’s overall success.
Transcorp’s long-term vision centres on transforming Africa through strategic investments in key economic sectors. The company emphasizes Environmental, Social, and Governance (ESG) criteria in its business dealings and investment decisions, aiming to build socially responsible and impactful businesses that serve diverse stakeholders. While Transcorp has established a strong presence in power, hospitality, and energy sectors, it has not publicly disclosed specific plans regarding expansion into new industries or regions. However, its commitment to improving lives and transforming Africa suggests a potential interest in sectors that align with these goals, possibly including technology, agriculture, or education, as well as exploring opportunities in other African countries to further its mission.
