Windhoek
The National Petroleum Corporation of Namibia (Namcor) says it is willing to forfeit the levy on the basic fuel price (BFP) in exchange for getting back its mandate to import most of the country’s fuel.
The corporation’s management is of the view that with the envisaged N$4 billion bulk fuel storage facility at Walvis Bay and the anticipated N$35 billion Kudu gas-to-power project Namcor can become a N$5 billion public enterprise ranked in the top three parastatals over the next five years.
However, all these plans, except for the fuel storage facility – which is expected to be completed by the end of 2017 – are yet to be decided upon by government. This was according to outgoing Namcor chairperson Johannes !Gawaxab, who spoke at a farewell briefing yesterday.
!Gawaxab explained that Namcor has submitted a business case to the Minister of Mines and Energy to be re-awarded the 50 percent fuel importation mandate, which the company lost in 2010.
“At this time there are some risk factors and we have de-risked these variables and submitted this request to the minister. If he is satisfied he will submit it to Cabinet,” !Gawaxab explained.
He said no self-respecting country would leave the control of such crucial imports in the hands of the private sector.
!Gawaxab’s term ends at the end of September. The entire board has in fact indicated that they will not be available to serve on Namcor’s board of directors.
!Gawaxab also announced that Namcor performed exceptionally well during the 2015/16 financial year, ending 31 March 2016 and expressed satisfaction with the national oil company’s performance under his tenure, describing it as a “successful turnaround”.
“Significant progress has been made on the strategic, operational and financial fronts. The company made a total of N$148 million profit during the 2015/16 reporting period and boasts cash reserves of well over N$400 million,” he revealed.
“We have a clear five-point strategy. The company moved from technical insolvency in 2012 to having N$400 million cash in the bank by the end of August 2016, while when we took over we had 38 de-motivated staff suspended, but now we have 93 highly motivated [employees].”
He added that in the course of the past two years the firm obtained an unqualified opinion from auditors on their books and now has solid performance and operational controls in place.
“We recorded a before tax profit of N$148 million for the financial year ending 31 March 2016. The company’s total assets increased from N$478 million in March 2013 to N$876 million in March 2016.”
He said the N$400 profit is attributed to a combination of sources, including the increased price of heavy fuel oil, improvements in debt collection and doubtful debt amounting to N$18 million, as well as foreign exchange gains of N$ 21 million.
He also mentioned that the N$142 million grant for Kudu Gas from the Ministry of Mines and Energy, as well as successful hedging programme and marginal improvements as notable successes during his tenure at the helm of Namcor.
On the Kudu gas project, he announced that Namcor has expressed its readiness to play its part in the implementation of the project by submitting a Deed of Assignment to allow a selected operator to participate in the Kudu Gas license as a 56% equity holder.
“The 800 megawatt project not only has the potential of catering for all of Namibia’s power needs, but will enable the country to become an exporter of power to regional markets,” he observed.