Transcorp Rallies to 7-Month High on Plant Handover: Lagos MoverEmele Onu
Transnational Corp. of Nigeria Plc, one of the buyers of the West African nation’s state-owned power companies, rallied to a seven-month high as the government handed over the plants.
The stock climbed for a third day, gaining 3.9 percent to 1.61 naira by 2:06 p.m. in Lagos, the commercial capital, the highest on an intraday basis since Feb. 28. Investors traded 55 million shares, equal to 66 percent of the three-month daily average volume.
Nigerian President Goodluck Jonathan handed control of 14 power companies to new owners including Siemens AG, Korea Electric Power Corp. and Transcorp. On Aug. 22, Transcorp said it completed payment for the $300 million Ughelli power plant in the Niger delta region and plans to increase generation to at least 1,070 megawatts within five years from 300 megawatts.
“The investment in power is stimulating investors’ interest in Transcorp,” Raheem Mohammed, chief executive officer of Lagos-based Kundila Finance, said by phone. “In the future, its income will be one to behold.”
Transcorp’s profit for the full year through December fell to 2.5 billion naira ($15.5 million) from 5.9 billion naira a year earlier, it said on May 21. Revenue was 13.2 billion naira, compared with 13.9 billion naira.
Transcorp rallied 62 percent this year, compared with the 30 percent gain by the Nigerian Stock Exchange All-Share Index.