Mozambique: HCB announces dividend increase of 11.6%

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Mozambique: HCB announces dividend increase of 11.6%

7:01 CAT | 05 May 2023

File photo: HCB

Dividends distributed by Hidroeléctrica de Cahora Bassa (HCB-Cahora Bassa Hydroelectric) to its shareholders increased by 11.6% compared to last year, according to data announced yesterday by the Mozambican state company.

At a general meeting, HCB approved “the distribution of dividends in the order of 44.92% of the approximately 9.2 billion meticais (€129 million) of the company’s net results”, a statement on the matter reads.

The amount corresponds to 4.1 billion meticais (€58 million), 11.6% more than the 3.7 billion meticais (€52 million) distributed in 2022.

This year, the amount of the dividend per share will be 0.156 meticais, up from 0.14 meticais last year.

It should be recalled that part of the HCB’s shareholding structure results from the public offering of 4% of the capital carried out in 2019.

The amount of around five billion meticais remaining from the company’s net results “will be transferred to retained earnings”.

The shareholders’ general meeting also served to ratify the contracting of loans with the African Development Bank (AfDB) and the French Development Agency (AFD), including the related guarantees, to finance the Capex Vital investment plan.

Acceptance of a European Union subsidy, in the form of a donation granted through AFD, was also ratified.

HCB intends to invest in a renovation providing for another 25 years of useful life which will also increase production capacity by 5% (currently at 2075 MW).

In 2022, the company obtained the endorsement of the African Development Bank (AfDB) and the French Development Agency (AFD) to support these works, with financing lines of up to €225 million for a strategy in which “priority will be the equity that the company has at its disposal”, the administration announced.

HCB shareholders also approved the appointment of new members of the governing bodies, namely Tomás Matola as chairman of the board of directors, Nilton Trindade, Ermínio Chiau, José Munice and Aida Mabdjaia, as executive directors, and Manuel Tomé and Faria Conceição as non-executive directors.

The hydroelectric plant in the Zambezi River valley near the town of Songo in Tete province is the largest in southern Africa, supplying electricity to Mozambique and neighbouring countries.

The Mozambican State owns 85% of HCB, the Portuguese company Redes Energéticas Nacionais (REN) owns 7.5%, 4% of the share capital is publicly traded and HCB owns 3.5% of its own shares.

READ: Cahora Bassa Hydroelectric reports 2022 profit of 9.2 bln meticais, a 9% decline – Lusa

Source: Lusa