The annual report and audited financial statements for the year ending 30 June 2022 of Mozambican Hydrocarbons Company (CMH), part of the National Hydrocarbons Company (ENH), reveal that the company’s profit soared that year.
The president of the company’s Board of Directors (PCA), Arsénio Mabote, explains that revenues were influenced by high oil prices on the international market, despite the fact that natural gas sales, in the year under review, decreased.
“This year was characterised by a significant rise in fuel prices as a result of restrictions on the supply of oil on the international market, which impacted positively on our revenues,” the PCA says in a message from the Board of Directors, in a clear mention, according to the Mozambique Charter, of the impact of the conflict between Russia and Ukraine, which has lasted for seven months with no end in sight.
This revenue resulted from the production and sale of 174.27 Million Gigajoules (MJG) of Natural Gas and Condensate, a reduction from the 179.35 MJG sold in the economic year 2021.
As in previous reports, CMH’s PCA notes that one of the main challenges is the availability of proven reserves, to ensure the supply of gas under the signed contracts.
“During this financial year we have been investing in additional boreholes and gas compression projects to recover more gas from the Pande and Temane reservoirs in order to increase the respective volumes to be supplied to cover the total contracted quantity, thus mitigating the reserves deficit,” the CMH PCA states in the Annual Report.
Regarding taxes and contributions, CMH paid a total amount of 12 million dollars to the State, of which 89% represents the corporate income tax (IRPC), 9% personal income tax (IRPS) and 2% social security contributions (INSS).