Cabo Verde: Covid pulls shipyard accounts back into the red

Login

Register

http://www.clubofmozambique.com/

Cabo Verde: Covid pulls shipyard accounts back into the red

9:34 CAT | 26 Oct 2021

Picture: Lusa

The Cabnave shipyard, the only state-owned shipyards in Cabo Verde, returned to losses in 2020 due to a 9.4% drop in turnover, mainly ship repair.

According to Cabnave’s 2020 report and accounts, seen today by Lusa, the company, with shipyards in Mindelo, São Vicente island, went from profits of 2.3 million escudos (€20,780) in 2019 to losses of 6.9 million escudos (€62,900) last year.

“Against all initial reservations, the 2020 financial year went much better, with a good contribution from the domestic market, where there were two major repairs. The contribution of the Spanish fleet also stands out,” the message from the board of directors, in the report, nevertheless, underlines.

Cabnave’s turnover reached 293.8 million escudos (€2.6 million) in 2020, a drop of 9.4% compared to 2019, influenced by the reduction (-7.4%) in the ship repair activity, which represents more than 98% of the company’s total services, in the context of the crisis caused by the pandemic, which forced a total shutdown due to the state of emergency declared to contain the transmission of Covid-19 in the archipelago.

According to the 2020 report and accounts, 45 ships were repaired at Cabnave, compared with 76 in 2019, mainly from the CaboVerdean fleet (19) and Spain (19), plus five from Portugal, one from China and another of a nationality not identified in the document.

“For reasons that may be linked to the repair rotation period, the traditional market of Korea was left out. China was also practically left out due to the start of the pandemic, which made it difficult to carry out repairs that were planned,” the 2020 report and accounts said.

The company, which the government plans to privatise, ended the year 2020 with a total of 149 workers and financial problems admitted by the board: “Treasury difficulties were great almost all the time, only relieved towards the end of the year with the implementation of a financing operation, under the line of credit to mitigate the effects of Covid-19, with a state guarantee of 50% of the value of the loan.

Maritime Economy Minister Paulo Veiga said at the beginning of 2019 that the government was looking for private parties with the capacity to invest up to €12 million in the country’s only shipyard.

“It has been improving lately, an investment between €6 and €12 million is expected, depending on what is intended and the studies will indicate in that direction,” the minister told Lusa news agency, regarding the announced privatisation process of the Cabnave shipyards.

Source: Lusa