Maputo, 13 Apr (AIM) – The debt of Mozambique’s publicly-owned National Hydrocarbon Company (ENH) and its 10 affiliated firms continued to rise sharply in 2021, despite efforts to liquidate it.
According to a document unveiled recently by the company, the total loans recorded in December 2021 were USD three billion compared with USD 2.9 billion recorded in 2020.
“ENH’s debt continued to grow in 2021, even after, in the same year, specifically in February, the Group settled 38.4 million USD with the European Investment Bank, borrowed to finance participation in the gas transportation project through the acquisition of part of the capital of the Mozambican Pipeline Company (ROMPCO) joint venture, which manages the pipeline that pumps natural gas from Inhambane to South Africa”, reads the document.
Because of the high debt, the document explains, the total liabilities almost swallow the Group’s assets, as ENH’s liabilities are USD 3.2 billion, and total assets are valued at USD 3.5 billion, down from USD 3.3 billion recorded in 2020.
Between assets and liabilities, the difference is only USD 300 million. Nonetheless, in 2021, the Group collected USD 48 million in profits, compared to negative USD 15 million recorded in 2020.
“From the debt, the highlight goes to the financing of the natural resources exploration assets in projects installed in the Rovuma Basin, to an amount of 2.9 billion USD, equivalent to 188.7 billion Meticais, which includes capital, interest and exchange rate differences, representing the costs incurred up to December 31st, 2021”, says the document.
These are the concession contracts for exploration and production projects in Area 4 Offshore of the Rovuma Basin signed on December 20, 2006 between Mozambican Government, ENI East Africa and ENH, and also in 2006 for Area 1, between the Mozambican Government, Anadarko Petroleum Corporation and ENH.
(AIM)
Ad/pf