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Transcorp Hotels Records Impressive Turnaround In Q3 2021, With A 662% Growth In Profit

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Transcorp Hotels Plc. (the “Company” or the “Group”), (Bloomberg: TRANSCOH:NL; Reuters: TRANSCOHOT.LG), owner of Transcorp Hilton Abuja, Transcorp Hotels Calabar, and Aura by Transcorp Hotels has announced its unaudited Q3 results showing 115 percent growth in revenue year-on-year (YoY) to N14.6 billion and gross profit growth of 149 percent to N10.8 billion, leading to a profit before tax of N745 million a 662% improvement on a performance recorded at the same period in 2020.

HIGHLIGHTS OF THE RESULT:

Statement of Profit or Loss:

Year-on-Year Analysis (YTD Sep 2021 to YTD Sep 2020) reveals the following:

  • Revenue: N14.6 billion in YTD Sep 2021, compared to N6.8 billion in YTD Sep 2020 (115% growth year-on-year)
  • Gross profit: N10.8 billion in YTD Sep 2021, compared to N4.3 billion in YTD Sep 2020 (149% growth year-on-year)
  • Operating expenses: N7.9 billion in YTD Sep 2021, compared to N6.0 billion in YTD Sep 2020 (31% growth year-on-year)
  • Interest Cost: N3.1 billion in YTD Sep 2021, compared to N4.5 billion in YTD Sep 2020 (31% decline year-on-year)
  • Profit/(Loss) Before Tax: N745 million in YTD Sep 2021, compared to N(5.6) billion in YTD Sep 2020 (662% improvement year-on-year)

Statement of Financial Position

  • Total assets increased by 2.18% from N115.3 billion in December 2020 to N112.9 billion in Q3 2021 due to the increase in Trade Receivables and Cash and Cash Equivalents precipitated by the improvement in business activities within the period.
  • Total liabilities increased by 3.31% from N53.5 billion in December 2020 to N51.8 billion in Q3 2021. This is due to the increase in trade payables because of improved business activities within the period.
  • Shareholders Fund: N61.84 billion, a 1.21% year-to-date increase relative to FY 2020’s value at N61.10 billion.

Commenting on the results, Dupe Olusola, the MD/CEO said:

“Our performance reflects the strength of our business to withstand external shocks and continue to grow revenue even in tough economic conditions.

“Demand has continued to improve at impressive levels during the year, accelerating in the third quarter to pre-pandemic levels. We ended September with 63 percent occupancy, growing from 28 percent achieved in the same period last year, as we continue to outperform the industry average on several indices.

“We are seeing significant improvement in our corporate and group bookings, as vaccination rates increase, and companies begin to return to full operations.. Domestic leisure demand remains very strong and continues to be responsible for the improvement seen on our revenue and this signifies our nimbleness and strength of purpose to redefine hospitality in Africa.

“Our flagship hotel Transcorp Hilton was named by the World Travel Awards as Africa’s Leading Business Hotel, for seven consecutive years. This is a testament to our continued focus on redefining hospitality and providing excellent services to our customers, ensuring that every experience with us is memorable.

“We remain focused on the execution of our growth strategy, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all our assets, properties, and touchpoints.

“Recently, we launched Aura by Transcorp Hotels, a digital platform for booking accommodation, food, and experiences. Aura caters to the three major things people need when they travel; where to stay, what to eat, and things to do to make their travel memorable. This business, which stems from our asset-light strategy offers us a great opportunity for expansion in line with our long-term plans to expand across Africa.

“As the global economy continues to recover from the impact of the COVID-19 pandemic, Transcorp Hotels Plc. will remain a leader in the industry, offering bespoke hospitality services to discerning guests, who live for memorable experiences and excellent service delivery.”

BIG STORY

NUPRC Revokes Licence Of Oritsemeyin Rig

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has revoked the operating licence of Oritsemeyin Rig and directed it to cease all operations upon the completion of its current well operations.

The notice is contained in a letter dated September 11, 2025, addressed to Selective Marine Services Limited (SMSL) and signed by the Commission Chief Executive, Engineer Gbenga Komolafe.

The NUPRC said in a statement on Friday 12 September, 2025 that the decision followed a thorough review of the circumstances surrounding the drilling of UDIBE-2 wellbore during which a kick was recorded, resulting in several Non-Productive Time (NPT) with consequential cost and a forced well sidetrack.

A kick on an oil rig is the unwanted flow of formation fluids (oil, gas, or water) into the wellbore due to a temporary pressure imbalance, where the pressure inside the wellbore becomes lower than the formation pressure. This phenomenon, if left unmanaged, can lead to a potentially catastrophic uncontrolled release of fluids called a blowout.

Subsequently, the NUPRC in accordance with Section 97 of the Petroleum Industry Act 2021, issued a formal notice of culpability via a letter dated June 5, 2025 with a timeline of 21 days followed by a reminder dated July 9, 2025 to ensure an amicable resolution which was not achieved even beyond the stipulated time.

“Consequent upon the forgoing and pursuant to the relevant powers conferred on the commission under the extant Petroleum Industry Act 2021, the annual licence to operate granted to Selective Marine Services Limited for the Oritsemeyin Rig is hereby revoked,” the commission stated.

The upstream regulator also disqualified the Oritsemeyin Rig from all renewal protocols in strict compliance with the applicable provisions of the law forthwith.

The NUPRC noted that this action is in line with the Petroleum Industry Act, 2021 which empowers the commission to ensure compliance with good oilfield and international best industry practices, operational safety and optimization as well as promote technical excellence and preserve commercial and environmental sustainability.

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BIG STORY

Dangote Refinery To Launch Free Nationwide Petrol Delivery September 15, Sets Ex-Gantry Price At N820

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The Dangote refinery has announced that it will begin free direct delivery of petrol to stations across Nigeria starting September 15.

In a post shared on its official X handle on Thursday, the refinery said the rollout would cover 11 states in the first phase before extending nationwide.

According to the statement, petrol will be sold at an ex-gantry price of N820 per litre. It added that filling stations in Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti will receive deliveries at N841 per litre, while Abuja, Delta, Rivers, Edo, and Kwara will get supplies at N851 per litre.

“All petrol station owners nationwide are invited to register for free delivery and other benefits,” the refinery said.

The plant noted that the scheme would ease distribution challenges and ensure affordable access for end users.

Earlier in June, the refinery said it had acquired 4,000 compressed natural gas (CNG)-powered trucks to strengthen fuel distribution across the country. It also projected that its nationwide delivery programme would save Nigerians more than N1.7 trillion annually.

Industry analysts have welcomed the initiative as a potential relief for consumers but cautioned that it could disrupt existing operators in the downstream sector.

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BIG STORY

NUPENG Threatens To Resume Strike, Accuses Dangote Refinery Of Breaching Agreement

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Barely 48 hours after suspending its nationwide strike, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has accused Dangote Refinery of reneging on an agreement reached during government-brokered talks.

In a statement signed by NUPENG President Williams Akporeha and General Secretary Afolabi Olawale, the union warned it may resume its suspended industrial action if the refinery continues to disregard the resolution.

“We are by this statement placing all our members on red alert for the resumption of the suspended nationwide industrial action,” the union said, calling on the Nigeria Labour Congress (NLC), Trade Union Congress (TUC), and civil society groups to show solidarity.

The union alleged that despite agreeing to allow workers unionise, Dangote management directed truck drivers to remove NUPENG stickers from their vehicles on Wednesday — a move the union described as a clear violation of the deal.

The agreement was reached earlier this week at a meeting convened by the Department of State Services (DSS), attended by Finance Minister Wale Edun, labour leaders, and representatives of the Dangote Group.

A Memorandum of Understanding (MoU) signed by all parties had affirmed workers’ rights to unionisation, with the process expected to begin immediately and be completed within two weeks. It also guaranteed that no employee would be victimised for union activity.

Dangote Refinery has denied allegations of anti-labour practices, dismissing them as “cheap blackmail.”

The refinery — commissioned last year with a capacity of 650,000 barrels per day — is Africa’s largest. While it has helped drive down petrol prices and reduce imports, its market dominance has raised monopoly concerns.

NUPENG’s Petroleum Tanker Drivers branch had first launched the strike on Monday, alleging that the company was hiring new drivers on the condition that they avoid union membership.

The Ministry of Labour is expected to issue a formal statement on the dispute, while parties are to report back on the unionisation process later this month.

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