Companhia Moçambicana de Hidrocarbonetos (CMH) recorded a 15.5% drop in its profits, which totalled 3.4 billion meticals (54.7 million dollars) in the fiscal year ending June 2024. The reduction was attributed to various exogenous factors, namely the international geopolitical situation and fluctuating commodity prices on the global market, as indicated in the company’s report and accounts.
According to Lusa, compared to the previous fiscal year, which ended in June 2023, the company had reported profits of 4.1 billion meticals, representing an increase of 75 per cent compared to 2022.
However, this year’s financial year was marked by operational challenges that impacted the production of natural gas and condensate at the Temane production plant in Inhambane province, which was reflected in a significant drop in revenues.
According to the report, the decline in the initial reserves of the gas fields, combined with operational challenges, contributed to the decrease in production volumes, with direct effects on revenues.
In addition, the increase in investments needed to sustain production and the risks associated with the implementation of new low-pressure compression projects, namely in the Pande field, also put pressure on CMH’s results.
The company’s management emphasised, however, that it is committed to developing and implementing investment actions to ensure the continuity of production and supply of natural gas in the long term.
Ongoing projects include the drilling of new boreholes and the installation of additional compressors as part of the Plateau Extension and Production Optimisation Programme (PEDOP).
To finance its participation in these projects, CMH has secured a medium-term credit line worth 3.1 billion meticals from commercial banks. The aim is to maintain the sustainability of natural gas production and fulfil the commercial commitments made under current contracts.
The report ends with an analysis of the company’s financial situation, highlighting that its total assets fell to 24.2 billion meticals, while liabilities fell to 7.4 billion meticals in the same period.
Despite the challenges, the company remains focused on ensuring the viability of its operations and overcoming the constraints that affected results in the last financial year.
