Africa-Press – Mozambique. Petromoc’s profits fell 90% in 2024, to 127 million meticais (€1.7 million), with the state-owned oil distributor’s continued existence under threat, according to the company’s financial statements.
This performance contrasts with the 528% increase in profits in 2023 compared to the previous year, reaching nearly 1,226 million meticais (€16.3 million), against 198.1 million meticais (€2.6 million) in 2022.
In Petromoc’s 2024 accounts, management reiterates that, with this positive result, equity increased to 872,291,566 meticais (€11.6 million), but “representing less than half of the share capital, which places the company in the situation described in Article 98 of the Commercial Code”, and forcing it, as in previous years, to adopt “measures to mitigate the risk of not remaining in business as a going concern”.
These measures include the implementation of long-term operational and business plans, reflecting the potential for improved economic indicators, and, in particular, the guarantee provided by Petromoc shareholder, the state , in the amount of 3.6 billion meticais (€48 million), to “enable the continuation of fuel imports, Petromoc’s core activity”.
The company also expresses its commitment to “reducing operating costs, aligning them with generation capacity”, as well as investing “in storage and distribution infrastructure and the retail network, expanding and modernizing it for greater effectiveness, efficiency, and attractiveness”.
The state-owned petroleum company advocates for closer ties with the fuel sector regulator, so that “it can ensure the strict implementation of the legislation regulating the activity, in order to eliminate sources of unfair competition, particularly in the management of the retail network, and aggressive commercial practices”.
“Based on all information available at the time, including regarding the liquidity and capital situation, as well as the value of assets, the entity considers that the going concern principle underlying the preparation of the financial statements remains applicable,” the report reads.
The Mozambican state holds a direct 60% stake in Petromoc’s share capital, which amounts to 8.3 billion meticais (€110.6 million) overall. It has a retail network of approximately 120 gas stations and a market share of over 20%.
Petromoc, with over 400 employees, also notes that it reports that it operates five ocean terminals, seven air facilities, and 11 intermediate depots, with a fuel storage capacity of nearly 445,000 cubic meters nationwide.
For More News And Analysis About Mozambique Follow Africa-Press
