Petromoc, the state-owned oil distributor, announced a 528 per cent increase in profits in 2023, reaching 1.1 million meticais (18.8 million dollars). However, despite this robust performance, the company’s continuity remains under threat, as indicated in the financial statements.
This positive result, as announced by Lusa, contrasts sharply with the 78 per cent drop in profits recorded in 2022, which stood at 196.1 million meticais (3.1 million dollars). “However, the company still depends significantly on state support for its operation,” reads the statement.
With the 2023 profits, Petromoc’s equity increased to 746.4 million meticais (11.8 million dollars). However, this figure represents less than half of the share capital, putting the company in the situation described in Article 98 of the Commercial Code. To mitigate the risk of continuity, Petromoc has implemented various measures, including long-term operational and business plans. It also has a state guarantee of 3.5 million meticais (56.9 million dollars) to ensure the continued import of fuel.
The state holds a 60 per cent stake in Petromoc, which operates 120 petrol stations and has a market share of 23 per cent, according to 2023 figures.
Petromoc’s 2023 report and accounts reinforce the majority shareholder’s commitment to continuing to support the company’s operations, guaranteeing its continuity. This support is evidenced by the “letter of comfort” and the expected involvement of the regulator to ensure strict implementation of legislation, eliminating unfair competition, especially in the management of the retail network and aggressive commercial practices.
The company plans to invest in warehousing and distribution infrastructure, as well as in modernising and expanding the retail network, aiming for greater effectiveness and efficiency. It also plans to reduce operating costs to bring them into line with its revenue generation capacity.
“Despite the challenges, Petromoc’s management remains optimistic about the continuity of operations, based on the information available on liquidity, capital and the value of assets, which grew to 33.9 million meticais (537.5 million dollars) at the end of 2023,” explains the document.
With a workforce of over 400 employees, Petromoc operates five ocean terminals, seven air facilities and 11 intermediate depots, offering a fuel storage capacity of almost 445,000 cubic metres throughout the country.
