Engen sees P33mn profit decline

The decline is mainly attributable to the effects of the Covid-19 lockdowns which reduced business activity nationally and the significant decline in global crude oil prices during the year.

Engen sees P33mn profit decline
Engen managing director Chimweta Monga (Pic:Monirul Bhuiyan/Press Photo)

Engen Botswana Limited says its profit before tax for the year ended 31 December 2020 will be 18.3 percent or P33 million lower than the P180.2 million reported for the year ended 31 December 2019. The petroleum marketer’s profit in the past period amounted to P147.2 million.

According to Engen, the decline is mainly attributable to the effects of the Covid-19 lockdowns which reduced business activity nationally and the significant decline in global crude oil prices during the year. As a result the gross profit has declined by 21.2 percent from P295.9 million to P233.1 million from 2019 to 2020 respectively. The Group says it performed above expectations on a replacement cost basis which represents the net profit after tax excluding the effects of inventory revaluations caused by movements in global crude oil prices. The replacement cost net profit increased from P47.5 million to P94.6 million from 2019 to 2020 representing a 99.2 percent increase.

Summary results for the year ended 31 December 2020 are expected by 31 March 2021. Shareholders are advised to exercise caution when trading in the Group’s securities until such time as a detailed announcement is made. In line with Section 5.4c of the Listing Requirements of the Botswana Stock Exchange (BSE), issuers must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the expected profit or loss (before tax) for the period to be reported upon next will differ by at least 10 percent from the financial results for the previous corresponding period.