By Stephen Ubanna
Tony Elumelu, Chairman, Transnational Corporation plc and United Bank for Africa, a pan African Bank, is a happy man. Elumelu’s source of happiness, was that Transnational Corporation plc, has maintained its transformation agenda emphasizing sustained growth and a relentless pursuit of long –term value for the Conglomerate shareholders.
Described as the African leading Conglomerate, with investments in different sectors of the African economy, particular, Nigeria’s power, energy and hospitality sectors of the economy, since 2004, Elumelu and other shareholders of the Group, may have been encouraged to invest significantly more in the Nigeria to improve lives and transform the home economy.
Taking a closer look at the Conglomerate business in Nigeria, it is the owner of the iconic Transcorp Hilton Abuja, Hilton Hotel Calabar, Cross river state, power plants in Ugheli, Delta state, Afam, Rivers state, and multi-million dollars investments in the Abuja Electricity Distribution Company , AEDC, to ensure that power gets to the last mile users safely and reliably and additional investments on the country’s energy sector, OPL281.
Given the epileptic power supply in Nigeria may have informed why Transcorp plc shareholders had paid much more attention to improving the nation’s power sector that had moved it from 160 MW to 700 MW, thus making it one of the best performing stock on the floor of the Nigerian Stock Exchange Market.
The listing of Transcorp shares n the floor of the Nigerian Exchange, shows that the strategic target of the power company is the removal of the burden of the power subsidy by the government. In turning Trancorp national Corporation into a Conglomerate, the shareholders were said to have decided in 2012, to acquire Transcorp power plant from the then President Goodluck Jonathan’s Administration, which was said to be performing at 160 MW.
Giving the determination of the Transcorp power plant shareholders to succeed, they were said to have spent a lot of time, money investing and refurbishing the power plants acquired from the government and taking to the level it is at present: serving the nation’s power demand.
There are indications that Trancorp power plc, alone, produces about seven percent of the nation’s total c electricity onsumption level but the Company had targeted to increase it to 25% as a way to make power available to all Nigerians and businesses at much lower costs.
Informed sources told The Value News that the Company’s target for investing millions of the North American country of the United States, US, dollars to the nation’s power sector is to give the government room to remove the subsidies on the power sector.
The worry of the Transcorp power plc investors was that the company is producing a unit of power at n10.00 and selling at N8.00, which was not cost reflective. The shareholders fears that if the Transcorp power plc continues to produce at high cost and make the loses of two naira in the next 10 years or three years , it will be out of business, which means throwing thousands of Nigerians into the unemployment market which may not be too good for the economy still struggling to survive.
Elumelu and other investors in Transcorp power plc, may have had their way as the Nigerian Electricity Regulatory Commission, NERC, under the close watch of Musliu Oseni, at the instance of President Tinubu, had approved an increase in country’s electricity tariff under the Band A, classification who enjoy , 20 hours of electricity supply daily to N200.00 for a 225 kilowatt per hour from the current price of N668.00 per kilowatt paid by the Urban consumers.
President Bola Ahed Tinubu, may have allowed the NERC, the nod to go-ahead with the electricity tariff increase as a way to attract more investment into the nation’s power sector and slash about $2.3 billion already spent to cap the tariffs. The implications was that Nigerian electricity consumers will now be made to pay $2.42 per one million British thermal units compared to the previous bill of US $2.18 that was paid.
In spite of the fact that across the country, that the government has not started implanting the new electricity tariff, the Transcorp plc, which had released its December 31, 2023, audited annual reports shows that the Company’s business, toplingrew upline by 57.03% as it made a profit of 75%, thus putting smiles on the faces of the shareholders as the Board was said to have declared a dividend of N3.13 for the investors.
According to a top official of the company, the dividend of N3.13 that had been proposed by the Board members for the to the shareholders actually underscores the company’s dedication ‘’to rewarding shareholders for their support with their investments which reflects the company’s strong financial position.
Transcorp power plc, which is one of the subsidiaries of the Conglomerate, Transnational Corporation plc, was said to have made a tremendous profit going by the audited financial statements of the company released on December 1, 2023, that had been released and approved by the shareholders at its recent Annual General Meeting, AGM, at Abuja, the Federal Capital Territory, FCT.
The company was said to have also reported gross earnings of N142.1 billion for the 2023, operating year results, which was said to be about N90.34 billion higher than the amount reported by the company in 2022. An insider said the company’s Profit After Tax, PAT, also showed an impressive performance when computed during the year under review as it had surged by 84. 61 % or N52.8 billion from the 2022 figure of N26.6 billion .
An elated Peter Ikenga, Managing Director, Transcorp power had attributed he impressive performance of the company ‘’to its strong operational capabilities and effective business strategies’’. We are proud of the significant progress that had been made in delivering value to the shareholders and stakeholders, he had remarked.
He noted that the performance of the power company over the last one year was a clear statement to the dedication and hard work of the current Management team and its focus on operational efficiency and ingenuity.
Financial analysts believe that with the earnings per share currently standing at N92.25, the Elumelu founded Transnational Corporation plc, Power Company, will continue to deliver significant returns to
its investors nationwide.
Suffice it to say that the Transnational Corporation plc, power company, Transcorp power plc, over the last couple of years, has continued to demonstrate its position as a major player in the African Continent power sector.
