Mozambique: New Chair appointed for Energy Fund FUNAE
File photo: MzNews
Mozambican Petromoc’s profits jumped 528% in 2023 to almost 1,226 million meticais (€17.6 million), but the state-owned oil distributor remains under threat, according to financial statements consulted by Lusa on Monday.
This performance contrasts with the 78% drop in net profits in 2022, compared to the previous year, to 198.1 million meticais (€2.8 million), with the oil company continuing to depend on state support.
In Petromoc’s 2023 accounts, the administration states that, with this positive result recorded, equity rose to 745,214,940 meticais (€10.7 million), “representing less than half of the share capital, which puts the company in the situation described in article 98 of the commercial code”, which is why, as in 2023, it has been adopting “measures to mitigate the risk of not maintaining continuity”.
These measures include the implementation of operational plans and “long-term” business plans that reflect the possibility of improving economic indicators and, in particular, the guarantee provided by the state shareholder, in the amount of 3,600 million meticais (€51.8 million), to “allow the continuation of fuel imports, Petromoc’s ‘core’ activity”.
The Mozambican state has a direct stake of 60% in the share capital of Petromoc, whose retail network comprises 120 filling stations with a market share of 23%, according to 2023 data.
In the 2023 report and accounts, the Petromoc administration adds that there is a “firm commitment from the majority shareholder to continue supporting its operations and guarantee continuity, attested by the letter of comfort” and that it expects the “engagement of the regulator” to guarantee “strict implementation of legislation that regulates the activity in order to eliminate sources of unfair competition, mainly in the management of the retail network and aggressive commercial practices”.
It also foresees investment in the storage and distribution infrastructure and the retail network, “expanding and modernising it for greater effectiveness, efficiency and attractiveness”, as well as “reducing operating costs by aligning them with the company’s revenue generation capacity “.
Despite the difficulties, the administration considers that “based on all information available at the time, including with regard to the liquidity and capital situation, as well as the value of assets”, which grew to 34 billion meticais (€489 billion) at the end of 2023, “the principle of continuity of operations that underpinned the preparation of the financial statements remains applicable”.
Petromoc, with more than 400 employees, states that it operates five ocean terminals, seven air facilities and 11 intermediate depots, with a fuel storage capacity across the country of almost 445,000 cubic metres.
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