The National Petroleum Corporation of Namibia (Namcor) yesterday acknowledged a recent disruption in unleaded petrol (ULP) supply, caused low purchase volumes in the market. Namcor stated this resulted in minor domestic petrol stock depletion.
As such, to mitigate the disruption, Namcor advised local retailers and commercial partners to explore alternative suppliers temporarily.
“This decision is motivated by our unwavering commitment to ensuring that our consumers’ fuel requirements are met promptly. Namcor is also actively collaborating with other oil companies to minimise disruption to industry stock levels,” read a Namcor statement.
The State-owned enterprise added that in its aspiration to becoming a world-class national energy company, it holds principles of transparency and good governance in the highest regard in all its dealings.
“While our foremost responsibility lies with our stakeholders, including the Namibian public, we are also obliged to protect our commercial interests,” read the statement from Namcor’s interim managing director, Shiwana Ndeunyema.
The statement continued that Namcor is not at liberty to disclose key commercially sensitive information, as this could potentially compromise its competitive position in a highly competitive downstream sector, where the corporation competes with international oil companies.
The State-owned fuel entity also clarified that while it operates within a competitive market, its financial sustainability is
achieved through a combination of business operations and commercial activities that do not exclusively rely on government subsidies.
“This approach aligns with our commitment to financial independence and self-sustainability in the energy sector,” Ndeunyema stated.
The Namcor statement was issued in response to a recent article in The Namibian newspaper, claiming Namcor was solely surviving on the N$10 million per month it receives from the national fuel levy. “First, while there have been informal and formal engagement with shareholder ministries, such as the Ministry of Finance and Public Enterprises as well as the Ministry of Mines and Energy on the company’s financial health, no formal submission has been presented to the Cabinet. As such, statements suggesting that the Cabinet has rejected Namcor’s proposal are factually incorrect and misleading,” Ndeunyema stated. He added that 2022 was undoubtedly a difficult year for Namcor amidst external mitigating factors, such as the ongoing Russia-Ukraine war, which resulted in significant fluctuations in oil prices in an already volatile-market.
However, Ndeunyema continued: “Over the past few months, Namcor has managed to stabilise its operations through competitive term agreements that have been thoughtfully established to manage our cash flow effectively. Like any other entity, Namcor maintains financial commitments with its suppliers and diligently manages debtor and creditor accounts. Our latest audited financial figures are available for public scrutiny through our website”.
Yesterday’s statement went on to state that Namcor, in consultation with its primary shareholders, has been proactive in managing challenges and steering the company on a positive growth trajectory.
“The current challenges we face are being addressed comprehensively, and we remain dedicated to the long-term sustainability and success of our operations, with the invaluable input and support of our shareholders. Our top priority remains the stability of our operations and our unwavering commitment to ensuring the financial success and sustainability of the company,” Ndeunyema stated.