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Transcorp Power Limited,a subsidiary of Transnational Corporation of Nigeria
has restated its resolve to deepening its presence in the nation’s power sector.
Tony Elumelu,the chairman of Transnational Corporation of Nigeria, who disclosed at the 15th annual general meeting of the company in Abuja,said Transcorp Power has significantly addressed supply issues, to its benefits.
He said: “Our focus for 2021 is to increase our available capacity taking into consideration the limitations in the nation’s transmission infrastructure.
“To this end, three of our generating turbines which were strategically taken out of inventory for refurbishment during the year will be returned to operation in 2021. These turbines contribute about 300MW to our available capacity. This, together with the assured gas supply, provides a solid foundation for a strong performance in 2021.
“We plan to further consolidate on the existing benefits from our membership of the West African Power Pool (WAPP) by expanding our electricity sales across the West African regional market. We will equally continue our engagement with NBET and Federal Government in finding a practical solution to the legacy debt owed to Transcorp Power Limited”.
He clarified N97 million impairment on the company’s balance sheet, stressing that it was only a debt owed by the federal government to power companies.
He assured the shareholders that there had been lots of improvement in the repayment process and commended the government particularly the Governor of the Central Bank of Nigeria (CBN) for facilitating the debt repayment obligations to power firms.
He said, “I am sure it should be more now. It’s actually a debt owed by the federal government to power companies.
“But as I said, things are now improving. Let me recognise the efforts of government especially the CBN governor who had been extremely patriotic and involved in driving the improvements in the repayments in the power sector. We hope that progressively they’ll clear all of these.”
He said the pandemic significantly affected business performance, particularly within the hospitality segment and that despite these challenges, the company remained resolute in its plan to achieve its long-term growth agenda and deliver value to its shareholders.
He said, “We made significant progress in deepening our play in sectors in which we operate (power, hospitality and oil and gas) and in expanding into new businesses.
“The power sector is classified as essential service and as a result, Transcorp Power Limited and its staff were exempted from the restriction of movement associated with the lockdown announced both at the federal and state government levels. Accordingly, the operations of Transcorp Power Limited were not materially affected by the pandemic.
“As we slowly overcome the COVID-19 pandemic and its economic impact, we believe that excellent execution of our strategic initiatives is fundamental to our success as a company. This is also critical in insulating ourselves from future systemic challenges. In this light, we will pursue the agenda below in 2021.
Meanwhile,some shareholders of the company have expressed optimism that the company’s share price will significantly appreciate and that they have elected to stand by the company.
Sir Sunny Nwosu, expressed excitement that the administrative expenses went down by N3.5 billion,adding that the development was an indication of a good management strategy by the company.
He said, “We are happy with the company, people on the board are serious minded people who are ready to improve the lives of shareholders”.
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