Transnational Corporation Stock Price Up 274.34% Year-to-Date

Kayode Tokede

Driven by strong fundamentals, the stock price of Transnational Corporation Plc has gained 264.34per cent in its Year-till-Date growth on the trading floor of the Nigerian Exchange Limited (NGX).

The conglomerate in charge of President and Group CEO, Dr. Owen Omogiafo saw its stock price closed yesterday at N4.23 per share from N1.13 per share it opened for trading this year.

The strategic investments in hospitality, power and energy conglomerate show its market capitalisation adding N126.01 billion YtD from N45.93billion it closed in 2022 to N171.9billion the stock that closed yesterday on NGX.   

The Group over the years has sustained impressive growth in top-bottom line, driven by effective management and business expansion that has impacted on revenue and return on investment.

Specifically, in 2019, the group declared N76.35billion revenue, while its profit stood at N7.90 billion. In the following year, Transcorp declared N75.3 billion revenue and N12 million profit, while revenue increased by 48per cent to N111.2billion in 2021 and profit rose by nearly 93 per cent to N23.1billion in 2021.

In addition, revenue closed 2022 at N135 billion as profit increased to N30.2billion.  

Analysts in an industry outlook report disclosed that the Nigerian power market is expected to register a CAGR of approximately 13per cent from 2022-2027.

According to the report, “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.

“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. Transcorp’s power subsidiaries are well-positioned to exploit available opportunities for growth.

“Transcorp Power holds a significant position as one of Nigeria’s foremost electricity generation companies, and it proudly possesses ownership of the esteemed Ughelli Power Plant. The plant commissioned in 1966 with an installed capacity of 972MW, however, capacity dropped to 300MW, before it became an asset of Transnational Corporation of Nigeria Plc (now Transnational Corporation Plc) in 2013, under the company’s power subsidiary, Transcorp Power Limited. Having satisfied the requirements to end post-privatization monitoring, the company was issued a discharge certificate on the 8th of May 2023. 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. He highlighted the 227per cent growth in generation capacity under Transcorp Power’s management in the last decade.

“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 N58.6billion 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 N83.85billion. 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.

On Hospitality Industry Outlook, the report stated that, “The hotel market revenue in Africa is expected to reach $13.80bn by 2027, with an average Annual Growth Rate of 8.68per cent over the next five years. Transcorp Hotels Plc is growing impressively in line with this outlook.

“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 the heart of Lagos (Transcorp Hilton Ikoyi). With Aura by Transcorp Hotels, the online platform for booking homes, hotels, and experiences, Transcorp Hotels Plc has fast-tracked its expansion plans, with hotels and apartments from all parts of Nigeria now listed on the platform, and Transcorp Hotels Plc now boasting over 5,000 rooms under management through the platform.

In addition, the report on business outlook added that, “The positive outlook in the sectors where Transcorp Group operate is triggering increasing demand for the Transcorp Group stock. Performance over the past four years has been impressive and the growth trend is sign of better. Things to come for one of Nigeria’s largest conglomerates.”