Source: NOIC’s after tax profit up 87 percent | The Herald 22 OCT, 2019
Chipo Chaumba Business Reporter
The National Oil Infrastructure Company of Zimbabwe (NOIC) posted a 55,1 percent revenue growth to US$340,2 million in 2018, up from US$219.4 million in 2017.
Profit after tax grew by 87 percent from US$14,2 million to US$26,5 million.
Speaking at the company’s 5th Annual General Meeting recently, the Minister of Energy and Power Development Fortune Chasi, said NOIC’s level of performance makes it one of the few state enterprises that declare dividend to Government annually.
Minister Chasi said this year’s dividend of ZWL$5 million was welcome.
“It is encouraging to note that NOIC continued to thrive despite the harsh economic environment characterised by cash shortages, the three tier pricing system as well as foreign currency shortages,’’ he said.
The growth in revenue was also buoyed by Genesis Energy, an oil marketing company that is owned by NOIC.
Notable contribution also came from the Fuel Ethanol Company of Zimbabwe (FECZ), a NOIC/Triangle joint venture.
The company made significant contribution in the production of ethanol for mandatory blending purposes during the year 2018.
Minister Chasi said he was pleased to see Government companies that were initially targeted for consolidation like Genesis Energy and Petrotrade operating profitably.
“I therefore expect the consolidated company to perform even better,” he said.
The Government is currently considering the consolidation of the oil marketing companies that it owns with the aim of creating a single and bigger government oil marketing company that would compete more effectively on the market and Genesis Energy is one of the companies that will be affected by this strategic decision when it happens.
The ministry also expects the FECZ to keep increasing its market share, through the development of new sugarcane fields, upgrading of the existing ethanol production plant or construction of a bigger one.