Transcorp Puts Smile On Faces Of Shareholders

 By Elizabeth Chukwuma

Transnational  Corporation, plc, Transcorp, described as the largest  listed Conglomerate ,  at the Nigeria Stock Exchange Market, Board of Directors,  appear to have sent a message to the shareholders  at its  17th  , Annual General Meeting, AGM,  Held  virtually  on Wednesday,  April 26, 2023, in Abuja, the Federal Capital Territory.

The trio of Tony Elumelu, the Chairman of the Congomerate,  Owen Omogiafo, President and Chief Executive Officer, CEO,  and Hajia Folukr Abdulrazaq, Non-Executive Director,  were said to be beaming  with smiles  in their group photograph to after their meeting to show that the shareholders  would smile to bank.

Elumelu: Chairman , Transcorp, Omogiafo, President &CEO, Abdulrazaq, Non-Executive Director

.  Indeed, the Board of Directors, were said to have declared a dividend of 5K, pershare , which was a 50 increase over the dividend declared last year for the  Conglomerate shareholders. This translates to N2bn to be   paid to the shareholders . The Transcorp Board could make such a mouth watery  dividend declaration for the shareholders  because  the group  total revenue  hit the roof top of  N35 billion , as Profit  grew to N30.2 bn , in Nigeria.

At present, Transcorp , according to insiders  has  almost  300,000  shreholders , scattered all over the country , who were said  to have been part of the 17th AGM, held  virually, thus making  it the first to do so in Nigeria. Elumelu could beat his chest that 2022, is the second consecutive year  of unbroken payment  of dividend by Transcorp. It is on record, that prior to the change in ownership and Management of the Conglomerate in 2011,  Transcorp ,  never paid dividends to shareholders.

The Conglomerate shareholders could do the meeting virtually this time around   following ‘’the signing into Law’’  of the  Business  Facilitation Act, BFA, by President Muhammadu Buhari, who is now counting days in office, preparatory to handing over to Asiwaju Bola Tinubu,  popular, Jagaban, a former governor of Lagos state and the President –elect on the platform of the ruling All Progressive Congress, APC.

 An Appreciative Transcorp  shareholders were said to have given kudos to the Elumelu led Board of Directors  and group’s Professionalism  and commitment  ‘’to growing value  for them  , noting  that fully organised virtul meeting has made it one of the first conglomerates to do so I the country.  

Farouk Umar,  of Advancement  of Shareholder Rights Association had described Elume as a man of his words.  Hear him: he promised us that  that as the Congrlomerate  grows , value for shareholders  will increase.  True to his word,  that has increase by 500%  under the Elumelu Leadership of Transcorp ‘’. Not only that , he said the company’s share price had increased in the Stock Exchange Market in the recent time which is’’ very encouraging and commendable’’.   

Ugheli Gas Fired Transcorp Power Asset

An elated Elumelu, the Transcorp Chairman, , may have gladdened the heart of shareholders  when  he  disclosed that the Conglomerate  has continued ‘’to deliver  on its  year to year  growth strategy’’, with a seven percent  increase in group’s total Assets nationwide. He had revealed that the  group’s total Assets   growing was  N442.7 billion  in 2022 a record yet to be beaten by any Conglomerate in the private sector. There is no gain saying the fact that Transcorp , may be competing with the Nigerian National Petroleum Corporation , now baptized, Nigerai National Petroleum Company Limited, NNPCL,  the Nigerian oil octopus,with the signing into Law of the Petroleum Industry Bill, PIB, in August 2020, by the Katsina state born Nigerian President.

Given a breakdown, of the group’s  subsidiaries performance in the 2022, Fiscal year,   Elumelu, who is also the  founder of Tony Elumelu Foundation, popular, TEF, which set aside $100 million, in 10 years,   to empower men and women, Entrepreneurs in the private sector in the African Continent    ,ad said that the power business  alone, increased its  available and generating Capacity.

 The Transcorp Chairman, had said that the power business increased its availability and generating capacity   from 598 Megawatts and 373 MW to 720 MW and 426 MW respectively.

 The Delta state multi-billionaire investor, was said to have attributed group’s power generating increase ‘’to the significant investment and rehabilitation of   its generating assets’’ . The rehabilitated power unit, according to a source in  Transcorp Power Limited , a subsidiary of the Congolomerate  is located at  Okoloma Afam, Ndoki  in Onyigno Local government Area of Rivers state, which was said to have been  synchronized  to the national grid.

Recall that the Goup  , had in 2013,  through  Transcorp Power Limited had  acquired  the 972  MW gas , fired Ugheli  Power plant  and which the source confirmed has been transformed ‘’to boost its generating capacity’’.  The Group was said to have further acquired the  Afam Power plc , in 2021, and which  appear ‘’to have cemented  its position  in the nation’s power sector as a key player’’.

 An appreciative Elumelu, Transcorp, Chairman had repeatedly said it to hearing of shareholders at its various AGMs, that ‘’the Board    is happy with the progress being made in the nation’s power sector and will strive to continue  to optimize   its available  generating capacity  with an improved gas supply’’ , which  industry operators had said are becoming increasingly more challenging.

In the area of hospitality business, in which he group has  demonstrated its  growth trajectory, by achieving  a record  average   occupancy rate of  79% with profit increasing  by 172% to N4.5 billion  in 2022 from N1.7 , in 2021, he noted that   while revenue   grew from N21.4 bn in 2021 ,  Profit After Tax, PAT,  for the Conglomerate,  declined from  N23.8 bn   to  N16.8 bn.

Transcorp Hotel , Abuja, FCT

 He had attributed  the decline in income ‘’to  the provision of N7 bn for deferred Tax and exceptional income of  N4.5 bn  recognised in 2021’’, that was said to have been  derived  from the consolidation  of Trans afam  Power Limited.

There is no gain saying the fact that the group   recorded  significant  improvements  across all Financial and Non-Financial  parameters in 2022, as reported by Elumelu, the Transcorp Chairman. Giving an insider information, he had said that ‘’ the group’s  Gross Earnings  increased  to N134. bn and Profit Before Tax, PBT, of  N30.2 bn’’.

Describing 2022, as a strong  year, for Transcorp, Elumelu,   ad said that  the Conglomerate will continue  ‘’to optimize  and expand on its portfolio  of investments’’ , notwithstanding ‘’ the challenging  operating  and economic environment’’. He avered  that the impact  of the grooup’s long-term  investment approach  has started  yielding result in the market , with growth  in share price  from N0.96  in January 2022,  to N2.69  as at the close of market  on Wednesday, April 26, 2023.

In a related development, Omogiafo, the President of the Transcorp group,  who was said to have spoken on their  performance at the virtual AGM,  had attributed its success  in 2022,  ‘’to its focus on   on the key sectors of the economy, power and hospitality  business .

He further attributed its impressive performance in 2022, ‘’to its  commitment  to investment  and its ablity  to drive execution’’. He noted that ‘’the group  is now strategically   positioned   and committed  to further  enhance its performance  , providing  value-  adding retuurns for all stakeholders  in the future and  making  a ‘’positive  societal impact’’.

He may have gladdened  the heart of shareholders  when he said that  ‘as  they move forward, they  will remain ‘’fully dedicated  and focused  on realizing  this vision with the relentless  efforts  of its Management team ‘’to achieve  remarkable  growth  and success for years to come’’.

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