TRANSCORP buys out companies and subsequently runs them as part of a diversified group. Following the success achieved in the management of Transcorp Hilton Hotel Abuja, TRANSCORP has branched out into power, agriculture, and oil and gas in order to spread its risk. Though incorporated as a private company in November 2004, its shares were not listed for trading on the floor of the Nigerian Stock Exchange until December 2006.
Members of the TRANCORP Group include Transcorp Hilton Hotel Abuja, Teragro Commodities Limited, Transcorp Power Limited, Transcorp OPL 281 Nigeria Limited and Transcorp Energy Limited. Transcorp OPL 281 Nigeria Limited which was licensed to prospect for oil in the Western Delta Region of Nigeria has yet to discover commercially viable oil and hence presently contributes nothing to total revenue.
The company benefits from the goodwill and global distribution network of the Hilton Group to bolster up revenue from its hospitality business. Revenue from the hospitality division rose from NGN14 billion to NGN15.3 billion between 2015 and 2016.
Transcorp Power Limited produced 65.4% revenue increase as a result of 54% upward revision of electricity tariff by the regulatory agency, the Nigerian Electricity Regulatory Commission. And on top of that the power generation company still lost about NGN8 billion before tax at 2016 year end.
Debts are rising and liquidity is being hurt as receivables are mounting.
Power generation in Nigeria is inadequate and the company stands to benefit from this going forward.We are of the opinion that TRANSCORP would be a good investment over the long haul.
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