Mozambique: Russia-Ukraine conflict boosts profit for public company CMH in 2022 – Carta

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Mozambique: Russia-Ukraine conflict boosts profit for public company CMH in 2022 – Carta

4:00 CAT | 23 Sep 2022

File photo: Carta

The Annual Report and Audited Financial Statements for the year ended on 30 June 2022, of Companhia Nacional de Hidrocarbonetos (CMH), part of Empresa Moçambicana de Hidrocarbonetos, reveals that the company’s profit soared over the period.

The Chairman of the Board of Directors of the company, Arsénio Mabote, explains that revenues were influenced by high oil prices in the international market, despite the fact that sales of natural gas, in the year under review, fell.

“This year was characterised by a significant rise in fuel prices as a result of restrictions on the supply of oil in the international market, which had a positive impact on our revenues,” said the CMH chair in a message from the Board of Directors, a clear reference to the impact of the conflict between Russia and Ukraine that has lasted for seven months with no end in sight.

This revenue resulted from the production and sale of 174.27 million gigajoules (MJG) of natural and condensed gas, a decrease from the 179.35 MGJ sold in the 2021 financial year.

As in previous reports, the CMH chairman mentions that one of the main challenges is the availability of proven reserves to ensure the supply of gas already under signed contract. “During this year we have been investing in additional boreholes and gas compression projects to recover more gas from the Pande and Temane reservoirs, in order to increase the respective volumes to be supplied and cover the total contracted quantity, thereby also mitigating the deficit of reserves,” Mabote says.

The CHM chairman says the company remains committed to paying satisfactory levels of dividends to shareholders, with all declared dividends having already been paid. “On September 29, 2020, the Ordinary General Meeting was held at which CMH shareholders approved the distribution of 75% of the net profit for the 2020 financial year. Therefore, in the present year, on October 27, In 2021, CMH paid its shareholders a total amount of US$8,558,195 in dividends for the 2021 financial year,” he explains.

Regarding taxes and contributions, CMH paid a total amount of US$12 million to the state, 89% in Corporate Income Tax (IRPC), 9% in Personal Income Taxes (IRPS) and 2% in social security (INSS) contributions.

CMH, SA is the Mozambican partner in the Pande and Temane Natural Gas Project Consortium. The joint operation’s partners are Sasol Petroleum Temane, which is the operator of the Pande and Temane gas fields and a Mozambican subsidiary of the South African Sasol Exploration and Production International, with a 70% stake. The CMH has a 25% stake, and the International Finance Corporation, a member of the World Bank Group, has a 5% stake.

By Evaristo Chilingue

Source: Carta de Moçambique