Sunday, July 14, 2024

Engen revenue surges on fuel price spikes

Engen Botswana Limited, the petroleum and lubricant company, saw its revenue jumping up by 80.5 percent as it benefits from fuel price spikes following the Russia- Ukraine war.

Like-on-like its revenue moved up to P 4.1 billion as compared to P 2.2 billion as of December 31, 2022.

Engen said its profit after tax stood at P 266 million compared P 253 million in 2021.

“Revenue from contracts with customers increased by 80.5 percent mainly due to fuel price increases emanating from Russia- Ukraine conflict, the coma said in its full-year financial report.

The retail division made sterling performance which was aided by the six price increases during the year, but, volumes went down by 10.8 percent. The sector got a hit as motorists reduced their movement during the period.  However, commercial division went up by 29.7 percent.

“These results were achieved through a great focus on efficiency improvement and cost management. One new, full offer, retail outlet was streamed during the year with a few others which are in the network plan for streaming in 2023,” the company said.

Engen is working plan to re-tool its commercial division which is faced with stiff price competition from its peers in the market. The move is aimed at making Engen the leading petroleum in the Botswana market.

“There was very strong price competition in this sector, however, the group managed to deliver robust performance,” Engen said.

“Commercial side of the business continue to deliver strong which exceeds expectations. Distribution o lubricants continued to play a pivotal role in the good financial performance in this channel,” it said.

The company was trading at 1277 thebe per share on Friday.

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