NOIC pays Govt $1,1bn dividend

Source: The Herald – Breaking news.

NOIC pays Govt $1,1bn dividend 
Energy and Power Development Minister Zhemu Soda

Rejoice Makoni Herald Correspondent

The National Oil Infrastructure Company of Zimbabwe (NOIC) has paid a dividend of $1,169,787,466 to the Government following a positive performance during the financial year ending December 31, 2021.

The dividend was handed over to the Minister of Energy and Power Development Zhemu Soda by NOIC’s chief executive officer Mr Wilfred Matukeni during its annual general conference in Harare on Thursday.

Minister Soda commended NOIC for operating profitably in the 2021 financial year and urged them to maintain and improve going forward.

“The dividend that NOIC has declared, standing at $1 169 787 466, is equivalent to 30 percent of the profit-after-tax that the company made during the year under review, which is the maximum that the company’s dividend policy permits the company to declare,” he said.

“NOIC plays a critical role in ensuring the security of fuel supply in the country through the provision of bulk transportation and storage of fuel, a service that the Company offers to the entire oil industry.

“During the same year, NOIC pumped 108 billion litres of fuel into the country, against a Target of 14 billion giving a negative variance of less than 1 percent. Not much fuel was exported in the hinterland in 2021 because of an uncompetitive tariff.”

NOIC and CPMZ were still in discussions aimed at agreeing on a discounted tariff for fuel destined for the hinterland, said Minister Soda.

He added that the target pumping would have been surpassed if exports had been higher.

Mr Matukeni said NOIC’s role did not end with providing such services but also extended to engagements with oil traders to pump more fuel into the country whenever inland stocks were running low or were projected to run  low.

NOIC also engaged oil traders to ensure the smooth injection and pumping of the fuel so that the country always held sufficient fuel in the NOIC bonded storage.

Minister Soda said NOIC was playing a critical role in ensuring the achievement of Vision 2030 and addressing economic challenges.

“It is clear that energy, in its various forms, is critical in the realisation of such priorities.

“No society can be, or can become, prosperous or empowered without adequate supplies of energy of the right quality and, certainly neither can Zimbabwe develop into an upper middle-income society should there be energy shortages in the country.

“The priorities of the New Dispensation, which, as already alluded to, include addressing economic challenges, championing investment, and improving the livelihoods of the ordinary citizenry, will not be achieved without supplies of adequate and quality energy products. Indeed, as some say energy is the driver of socio-economic activity,” he said

Although the provision of energy in the country was a combined effort by both Government-owned companies and private companies, Government-owned companies such as NOIC played a special role in ensuring enough energy supplies.

“Given that around 95 percent of the country’s fuel requirements are transported into the country through pipeline, the country almost entirely relies on fuels important through NOIC.”

NOIC’s board chair Air Vice Marshal (Rtd) Innocent Chiganze said the company was committed to satisfying its customers’ expectations as well as pursuing cleaner energy in line with the world outlook on climate change and sustainable development.

“As of 30 June 2023, the company’s total revenue stood at $191,8 billion whilst profit after tax stood at $19.576 billion.

“As of 30 June 2023, we had pumped a total of 991,9 million litres through the pipeline against a target of 960 million litres. We are on course to achieve the annual target of 1,9 billion litres,” he said.

“NOIC’s approach to sustainability is entrenched in the principle of creating shared value which is focused on economic and social development, and environmental protection.

“We are committed to socially and environmentally responsible practices and good governance.”