Transcorp Plc Expects Q2’16 Earnings to be Affected by Unrealized FX Loss

Proshare

Friday, July 29, 2016 1:15pm/ NSE 

Transcorp Plc, Nigeria’s leading conglomerate announces that its expected earnings for Q2 2016 will be affected by the followings:
 

1. Unrealized foreign exchange loss following impact of material devaluation of the Naira against the United States Dollar (USD) for our power subsidiary. Transcorp Power Limited. The foreign exchange loss of N14bn was due to the exposure of the Group to USD obligation following the devaluation of the Naira from N197/$1 to N282.5/$1.
 

2.  The generating capacity for our subsidiary Transcorp Power Limited declined significantly during the quarter as a result of the deteriorating gas supply situation since February 2016 where our daily capacity has gone down from 600MW to 280MW and sometime at less than 100MW.
 

3. The receivables from the Nigeria Bulk Electricity Trading Plc (NBET) stand at over N28bn.
 

However, our hospitality business remains resilient, posting stronger year-on-year performance. We remain confident of a strong and positive outlook for the Group despite these short term challenges. Management option for the conversion of foreign currency loan has been limited as a result of liquidity of the foreign exchange market.

 

Further details of the Group’s financial performance will be disclosed in the unaudited half year financial results to be released.  

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