WINDHOEK, 26 JUNE – The National Petroleum Corporation of Namibia (Namcor) has seen a dent in its revenue from N$ 648 million in the 2015/16 financial year (FY) to N$575 million in the 2016/17 FY.
This was revealed in the institution’s annual report tabled in the National Assembly by Minister of Mines and Energy, Tom Alweendo, here last week.
“This is attributed to the slowdown in the Namibian economy and the continued downward pressure put on global commodity prices,” Immanuel Mulunga, Namcor’s Managing Director (MD) stated in the report.
However, despite these challenges, the group realised proceeds of N$23 million for the sale of seismic data.
Mulunga reiterated that Namcor remains financially stable and robust, boasting cash reserves of N$453 million.
He added that Namcor’s financial standing continues to increase year-on-year, with its total assets increasing from N$87 million to N$963 million during the period under review.
The previous two financial years saw increases in Heavy Fuel Oils (HFO) volumes sold by Namcor.
However, the period under review saw a decline in HFO sales to the fishing and mining sectors.
The two sectors came under pressure during the 2016/17 FY as a result of low commodity prices and a decline in vessel trips, the MD explained.
Looking into the future, Mulunga was confident that Namcor will have three to four fully operational fuel sites in the country.
Additionally, Namcor acquired land in the northern town of Ongwediva for the purpose of putting up a fuel depot.
“These initiatives all form part of Namcor’s competitive and growth agenda in the market,” he said.
The report further added that Namcor’s interest-bearing debt increased from N$213 million to N$241 million as a result of funding received from the National Energy Fund to finance its downstream activities.