Tony Elumelu’s Transcorp posts Q1 profit above $27 million on hospitality gains

Transnational Corporation Plc (Transcorp Group), the diversified conglomerate controlled by Nigerian billionaire Tony Elumelu, reported a steady start to 2026, posting a profit of N37.9 billion ($27.6 million) for the first quarter, even as pressure in its power business weighed on revenue. The result reinforces its standing as one of Africa’s largest listed conglomerates.

The group’s latest filing shows profit rose from N36.7 billion ($26.7 million) in the same period a year earlier. A key driver was a shift in finance performance, with net finance income of N1.28 billion ($0.93 million), compared with higher costs in the prior year. That helped offset a drop in revenue, which fell to N125.1 billion ($91.1 million) from N143.7 billion ($104.6 million).

Hospitality business cushions power weaknesses

The softer top line reflects ongoing strain in the power segment. Gas supply shortages and damage to transmission infrastructure limited how much electricity could be delivered to the national grid. While the group maintained generation capacity, the gap between available and dispatched power remained a challenge through the quarter.

President and Group Chief Executive Officer Owen Omogiafo said the company is working with industry stakeholders to address the constraints. She noted that available generation capacity reached 973 megawatts during the period, but only 454 megawatts could be sent out due to gas and transmission issues.

Away from power, the hospitality business provided a measure of stability. Growth in that segment was supported by steady demand and expanded offerings, including a new events center that is helping attract conferences and social functions. The unit continues to play a balancing role when other parts of the business face pressure.

Improved outlook as operating conditions stabilize 

Transcorp operates across power, hospitality, and energy. Its power subsidiaries, including Transcorp Power and TransAfam Power, account for more than a fifth of Nigeria’s installed electricity capacity. It is also building its presence in upstream energy through its interest in OPL 281, while its hospitality assets include Transcorp Hilton Abuja and the Transcorp Center.

Despite the revenue decline, the balance sheet strengthened. Cash rose to N31.4 billion ($22.9 million) as of March 31, 2026, from N21.8 billion ($15.9 million) at the end of last year. Total assets increased to N1.08 trillion ($786.4 million), while shareholders’ equity climbed to N392.8 billion. Retained earnings also moved higher, reflecting the group’s continued profitability.

Omogiafo said the group remains focused on improving output in its power business while building on gains in hospitality. She added that management expects a better operating environment as the year progresses, with efforts underway to address supply constraints.