The poor electricity supply in the country, which has adversely affected many businesses, has heightened the energy costs of Transcorp Group, the PUNCH has learnt.
Transcorp Group’s 2022 annual report showed that energy costs rose from N1.68bn in 2021 to N2.33bn in 2022, an increase of 38.69 per cent.
From of this, Transcorp Hotels Plc, the hospitality subsidiary of the group, incurred an energy cost of N2.03bn in 2022 from N1.51bn in 2021.
In the CEO’s report, the Managing Director/CEO of Transcorp Hotels, Mrs Dupe Olusola, noted that the sharp rise in energy cost impacted the company’s cost of operations.
She said, “The consistent rise in inflation rates from 15 per cent in January to 21 per cent in December, and the sharp rise in energy costs impacted our cost of operations adversely. In response, we intensely drove our cost management imperatives, including implementing an alternative power source for our boiler. Despite all of these challenges, we continued to deliver superior customer experience while we retained our position as the market leader in the hospitality industry.”
Last year, the Chairman of Transcorp Group Plc, Emmanuel Nnorom, said that the biggest annual operational cost incurred by the company was its electricity expenditure.
He said, “Energy is our biggest cost because we have 670 rooms in this hotel and, continuously, we have to ensure that there is adequate power not only for the guests but also for other facilities.
“It is our biggest cost. It is going to rise because we all know that the price of diesel has gone up. Also, in a way, the power cost is also up, but we will continue to do well to have good returns for our shareholders.”
