Windhoek: The National Petroleum Corporation of Namibia (Namcor) reported a net loss of nearly N.dollars 1.3 billion for the 2022/23 financial year, despite a rise in revenue to N.dollars 7.4 billion.
According to Namibia Press Agency, the losses were driven by high trading volumes that failed to deliver sufficient margins, coupled with Namcor's relatively small market share of 7 to 8 per cent, which weakened its pricing power. In a statement on Sunday, Namcor said its trading and distribution subsidiary had recorded heavy losses, largely due to governance lapses, poor debt management, and operational inefficiencies.
To prevent collapse and safeguard national fuel security, the government extended a N.dollars 1.2 billion bailout in April 2024, which allowed Namcor to settle key debts, including a N.dollars 500 million payment to its largest creditor, reducing total debt from N.dollars 3.3 billion to N.dollars 1.6 billion. 'The board, shareholders, and management have worked diligently to substantially reduce Namcor's overall debt, with the primary objective of safeguarding the country's fuel supply security.
Further efforts include legal action to recover N.dollars 841 million in overdue debts and disciplinary processes linked to stock losses and alleged theft at the National Oil Storage Facility. Namcor also nullified an unauthorised N.dollars 53.2 million asset purchase and is pursuing recovery of the funds,' the statement read.
It further said that as part of its turnaround strategy, Namcor has implemented stricter governance measures and created key positions, such as the Chief Internal Auditor, to drive reforms. The corporation also plans to revise operational agreements at the National Oil Storage Facility to improve profitability. 'Namcor remains focused on rebuilding institutional resilience, restoring stakeholder confidence, and ensuring transparent communication with the public, while committing to repositioning itself as a stable and profitable state-owned enterprise that delivers long-term value for Namibia.