Mozambique: ENH financial results improve by 200%

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Mozambique: ENH financial results improve by 200%

2:41 CAT | 28 Oct 2020

File photo: Lusa

Mozambique’s National Hydrocarbon Company (ENH) achieved a 200% improvement in performance in the financial year ending June 30, the company announced.

Thanks to dividends received, and despite a negative operating result, ENH closed the year with a positive net result of 1.551 billion meticais (€18 million). A year earlier, in June, 2019, ENH’s financial year closed with a positive net result of 515 million meticais (€6 million).

“This behaviour was due to the contribution of financial results, which improved by 79% compared to the previous year and were mainly due to the increase in dividends received from subsidiary companies,” reads the message from Chairman of the Board of Directors Estevão Pale which accompanies the report and accounts.

The message and a summary of the report were published in the newspaper Notícias on Tuesday, and the complete document, made available on the company’s Internet portal, is reported on by Lusa today.

The report covers the first year since Pale took over the leadership of ENH from Omar Mithá in January.

“Despite the 29.5% increase observed in sales, the company’s operating result was negative, standing at -1,372 million meticais (€16 million), 18.1% below the operating result, also negative, observed in the previous year,” the report details.

According to the document, “despite this situation, during the present period, dividends were paid to the State as shareholder in the amount of 206 million meticais (€2.3 million) in relation to the results obtained in the 2018-2019 fiscal year”.

ENH’s participation in the Rovuma natural gas projects “required a variety of internal human, material and financial resources and financing by project partners, with a view to fulfilling its obligations”, the document explains.

“We are pleased to note that, despite the various challenges faced during the period, these projects were not affected,” the company added in allusion to the impact of Covid-19.

The start of gas extraction in the Rovuma basin, Cabo Delgado, is scheduled for 2022, with the start of exploitation of the Coral reserves by Eni and Exxon Mobil, followed in 2024 by the start of the project led by French major Total – the largest private investment in Africa, at around €25 billion.