Mozambique: Profits of Cahora Bassa Hydroelectric increase by 13.4% to €195 million by September

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Mozambique: Profits of Cahora Bassa Hydroelectric increase by 13.4% to €195 million by September

8:55 CAT | 02 Jan 2025

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File photo: Cahora Bassa Hydroelectric Facebook

The profits of the Cahora Bassa Hydroelectric plant, located in central Mozambique, grew by 13.4% in the first nine months of the year, reaching 12.919 billion meticais (€194.9 million), according to financial information accessed yesterday by Lusa. This performance contrasts with the net profits of 11.389 billion meticais (€171.8 million) recorded between January and September 2023, with the hydroelectric’s management estimating profits of nearly 13.039 billion meticais (€196.7 million) for the entire year of 2024.

In the same report, sent to the Mozambique Stock Exchange, the company states that its balance sheet, along with liquidity and solvency indicators, “demonstrate financial stability in the short, medium, and long term.”

It adds that the 8.2% increase in equity, to 97.793 billion meticais (€1.475 billion), was “influenced by the growth in retained earnings,” while the 2.3% rise in total liabilities, amounting to 3.312 billion meticais (€49.9 million), “is primarily due to the value of dividends” owed to the Portuguese shareholder Redes Energéticas Nacionais, “which had not been paid as of 30 September.”

The Mozambican state holds 90% of Cahora Bassa Hydroelectric’s share capital, following its transfer to Mozambique as part of an agreement with Portugal in 2007. The Portuguese company Redes Energéticas Nacionais (REN) owns a 7.5% stake, while Electricidade de Moçambique holds 2.5%.

The Cahora Bassa reservoir is the fourth largest in Africa, with a maximum length of 270 kilometres and a width of 30 kilometres, covering 2,700 square kilometres with an average depth of 26 metres. The facility employs nearly 800 workers.

Source: Lusa