Tony Elumelu’s Transcorp to Give Shareholders $4.41-million Dividend Payout
Tony Elumelu’s Transnational Corporation of Nigeria Plc (Transcorp), has approved a dividend payment of $4.41 million for the year. The approval is an increase from last year’s $1.76 million, resulting in a dividend payout of $0.000108 per share on the group’s outstanding ordinary shares of 40,647,990,293 shares for the year ended 31 December 2022.
This development comes after the publicly traded diversified conglomerate led by Elumelu, Nigeria’s businessman suffered a double-digit decline in earnings at the end of the 2022 fiscal year.
Reports say the group’s profit for the 2022 fiscal year declined by 29.3 per cent from $51.7 million in the 2021 fiscal year to $36.6 million.
What was the reason for the decline?
The decline in Transcop’s profit has been linked to a surge in direct costs, higher administrative expenses, and an increase in finance costs, which exceeded $35.8 million during the same period.
Also, the group’s earnings were affected by an increase in impairment loss on financial assets, which rose from $397,100 to $1.46 million during the year.
The decline followed a rise in revenue from $242 million to $292.6 million.
Elumelu and Transcorp
Elumelu’s Transcorp focuses on acquiring and managing strategic businesses that deliver a positive socio-economic impact to the country and create long-term value for shareholders.
As the chairman of Transcorp, Heirs Holdings, and the United Bank for Africa, Elumelu holds a total of 840,632,956 ordinary shares in Transcorp, including both direct and indirect stakes.
Transcorp Energy Limited, the group’s energy subsidiary, has also unveiled plans to build Nigeria’s first nuclear power plants to strengthen the group’s integrated energy strategy while providing an alternative energy source to improve access to electricity.
The Nigerian business magnate is also the founder of the Tony Elumelu Foundation.
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