2.7 billion meticais in 2017

The net profit of Mozambique’s Empresa Nacional de Hidrocarbonetos (ENH) increased 26% in 2017, with company chairman Omar Mithá attributing the result to a 2.3 billion meticais rise in sales from 2016 to 2017. Therefore, ENH ensures. According to the Chairman of the Board of Directors, the company is in good financial health, with profits increasing from 2.1 billion meticais in 2016 to 2.7 billion meticais in 2017.

“Turnover has grown by about 39%, a large part of this increase, about 81%, resulting from the sale and transportation of gas from the active Pande and Temane (Inhambane) fields,” Mitha said.

ENH’s operating results increased by 35% from 1.6 billion meticais in 2016 to 2.2 billion meticais in 2017.

But not all went well. In 2017, some ENH customers did not honour their commitments, costing the company 437 million meticais, compared to losses of 54 million meticais in 2016.

“Interest rates increased and this is justified by the fact that in the period from 2015 to 2016, we witnessed an increase in inflation, not only due to the substantial depreciation of the metical, but also to the economic recession in Mozambique. This was reflected in interest rates. Interest substantially increased by 70% and impacted financial income,” Mitha explained. ENH’s assets increased in 2017, a situation stimulated by its partnership in the Rovuma Basin Area 4 project. The gas exploration vessel being built in South Korea is now about 40% complete. Company equity rose from 9.3 billion meticais in 2016 to 12.7 billion meticais in 2017. Cash in hand in 2017 stood at just over 12.7 billion meticais, 0.4% more than in the previous year.