WALVIS BAY – Namport has posted improved earnings during the 2021/2022 financial year, raking in N$1.23 billion in revenue, compared to N$1.11 billion made during the previous financial year.
Namport’s improved revenue comes amidst serious challenges facing the shipping and logistics sectors, including a shortage of vessels.
The revenue, thus, increased by 11%.
Namport CEO Andrew Kanime told journalists last week the volumes of containerised and non-containerised or bulk cargo increased year-on-year by 8% and 9%, respectively.
“Cross-border volumes also recorded a 10% increase to 1.4 million tonnes from 1.6 million tonnes that was reported in 2021, representing a 24% increase of total cargo volumes handled,” Kanime said.
Cargo destined for landlocked countries also increased from 550 113 tonnes to 1 million tonnes, while the overall vessel tonnage increased by 21%, translating to 3.4 million tonnes.
The increase in vessel calls, according to Kanime, was mainly due to the increase in petroleum, research, dry bulk, roll-on-roll-off, foreign tugs and foreign fishing vessels that docked at the two ports of Walvis Bay and Lüderitz.
“Conversely, our operational expenditure remained flat while our operating profit for the said financial year increased from N$121 million to N$374 million, excluding the non-operational income of N$147 million. This amounts to an 88% increase in operational profitability,” said Kanime.
However, Kanime said Namport made an operating loss before tax – and this was largely because of the high debt service cost on the funding secured for the new container terminal construction, which had previously been capitalised until project completion in 2020.
The new container terminal was built at a cost of about N$4 billion.
The Namport CEO added they could comfortably cater for these financial costs and maintain a positive bottom line.
Hence, profit before taxation for the year amounted to N$253 million (and N$106 million, excluding non-operational income) in comparison to the loss before tax of N$38 million for the 2021/2022 financial year.
Kanime also indicated they are currently rebuilding their cash reserves, which had almost been depleted, following the extensive capital expenditure on the new container terminal and the concurrent servicing of the loan during the construction phase.
“Augmented by the positive financial performance, cash and cash equivalents, held as of the 31st of March 2022, amounted to N$227 million, up from N$85 million at the end of the previous year. During the year under review, a total of N$479 million was paid towards capital expenditure and debt service obligations. Overall, we are humbled and encouraged by the significant improvement in our financial performance and financial standing, and it is our goal to sustain this into the future for the long-term benefit of our shareholders and the country,” Kanime said.
– edeklerk@nepc.com.na