Mozambique: ENH makes €6.6M profit in 2022

Login

Register

http://www.clubofmozambique.com/

Mozambique: ENH makes €6.6M profit in 2022

11:50 CAT | 22 Aug 2023

FILE - ENH's General Assembly meeting was held earlier this August in Maputo, with the participation of the Board of Directors, the shareholder IGEPE (Institute for the Management of State Holdings), the Supervisory Board and the Ministry of Mineral Resources and Energy - MIREME. [Photo: ENH]

Empresa Nacional de Hidrocarbonetos (ENH), the oil company owned by the Mozambican state, reversed its 2021 losses and made a profit of €6.6 million last year, according to its annual report and accounts, consulted by Lusa on Monday.

According to the document, the oil company had recorded a net loss in 2021 of 153.1 million meticais (€2.2 million), which became a 461.9 million meticais (€6.6 million) profit in 2022, with sales of goods and services – essentially gas – practically doubling, to 960.2 million meticais (€13.6 million) last year.

ENH operates under the Ministry of Natural Resources and Energy, and its “main objective” is oil activity, “namely prospecting, research, development, production, transport, transmission and commercialisation of hydrocarbons and their derivatives”, including imports and exports.

In the report, the oil company identifies that the financing of natural resource exploration assets in the country amounts to more than $1.195 billion (€1.098 billion), an increase on the $1.027 billion (€943.7 million) invested on 31 December 2021.

The company’s assets grew last year to more than 95,698 million meticais (€1.364 billion), while its liabilities increased to 83,959 million meticais (€1.197 billion).

The share capital of ENH, which has more than 200 employees, amounts to 749,001,913 meticais (€10.6 million) and is fully subscribed and paid up by the Mozambican state, the company’s sole shareholder.

Created in 1981, ENH is involved in all oil operations and the respective phases of research, exploration, production, refining, transport, storage and commercialisation of hydrocarbons and their derivatives, including Liquefied Natural Gas (LNG) and Gas to Liquids (GTL), both inside and outside the country.

According to the company’s information, its “main assets” include stakes in concession contracts of affiliates in oil operations, classified as “assets available for sale”.

The assets also include goods and equipment for research, a natural gas processing centre and the entire associated complex, and a gas pipeline of around 850 kilometres linking Pande/Temane to the Secunda region in South Africa.

“Complementing this pipeline, as part of the supply of natural gas to the domestic market, are infrastructures and pipelines for the supply of natural gas to the distribution networks in Matola and Maputo,” explains the company.

ENH’s other holdings correspond to various projects in the development phase, which have yet to be accounted for.

“However, of the Rovuma reserves, of which ENH holds 15% in Area 1 and 10% in Area 4, which will be developed through entities with specific purposes, namely commercial companies,” ENH Rovuma Area 1 and ENH FGNL “offer great potential for the appreciation of non-current assets as a counterpart to the evolution of equity,” the oil company emphasises.

Source: Lusa