Transnational Corporation of Nigeria Plc, Transcorp, has reported a loss after tax of N14.2 billion for its third quarter ended September 30, 2016.
The conglomerate’s financial results also showed that revenue of N41.9 billion was up by N11.50 billion which translated to a 38 percent growth from N30.4 billion in Q3 2015.
Gross profit of N19.8 billion was an improvement of 9 percent from N18.2 billion in Q3 2015, but net finance cost rose 618 percent to N24.4 billion from N3.9 billion.
To this end, the group posted a loss before tax of N12.8 billion compared to profit before tax of N7.2 billion made in Q3 2015.
President/CEO of the group, Emmanuel Nnorom, who commented on the result, said the loss was from foreign exchange loss due to impact of material devaluation of the naira against the United States Dollar (USD) on USD acquisition facility.
“The illiquidity in accessing foreign currency has affected the Managements plan to convert the USD Facility to local currency,” he said.
“In addition, the generating capacity for Transcorp Power Limited declined significantly during the quarter as a result of the deteriorating gas supply situation and load restrictions from the national grid.
He stated that the group’s hospitality business remains resilient, posting stronger year-on-year performance. He also added that the group remains confident of a strong and positive outlook for the group despite these short term challenges.
