NamPower made N.dollars 1.2 billion profit in 2018

10 Jun 2019 13:30pm
WINDHOEK, 10 JUN (NAMPA) - NamPower made N.dollars 1.2 billion profit and increased their investment income by 15 per cent, from N.dollars 673 million to N.dollars 772 million. According to the company’s annual report tabled in the National Assembly recently, the investment income was attributed to the prime interest rate that remained constant at 10,5 per cent for the 2017/18 financial year.
“The increase in the average investments held and the fact that there was no exceptional expenditure on capital infrastructure during the period under review resulted in the increase in investment come,” the report reads.
The group’s profit before tax in 2017/18 was N.dollars 1.7 billion, which is an increase from the N.dollars 1.5 billion made in 2015/16.
However, NamPower was liable for N.dollars 607 million current tax and thus, the group profit after tax amounted to N.dollars 1.2 billion, which increased when compared to N.dollars 1.1 billion made during the preceding year.
The group also saw an increase in their total assets from N.dollars 30.9 billion in 2017 to N.dollars 32.1 billion in 2018 and spent an overall N.dollars 80 million on repairing and maintaining transmission networks and power stations.
Although the electricity sales volumes increased by 3 per cent from 4 157 gigawatt hours (GWh) in the previous year to 4 282 GWh in 2018, the maximum demand decreased from 677 megawatt (MW) achieved in June 2017 to 639 MW in June 2018, showing a decrease of 6 per cent.
“The decrease in maximum demand is attributed to a decrease in production in the mining sector and a challenging economic environment. Renewable sources of energy, for instance solar water heating and installation of rooftop solar photovoltaics, have also contributed to the lower demand,” the report stated.
On the other hand, rainfall during 2018 was lower than the previous year and as a result, there was a decrease in dispatch of the local cheaper electricity generation from the Ruacana hydro power station.
In addition, NamPower’s reliance on regional partners increased by 10 per cent from 63 per cent in 2017 to 73 per cent in 2018 as a result of the country’s high energy demand.
A total of 4 826 GWh units of electricity was imported and 3 per cent was contributed by Independent Power Producers.
The company also spent N.dollars 171 million on power from IPPs during 2018, which increased from N.dollars 61 million in 2017.