NAMCOR’s three-stage plan set to resolve entity’s financial doldrums
The National Petroleum Corporation (NAMCOR) this week shared a plan to solve money problems it is been facing.
NAMCOR’s acting managing director, Shiwana Ndeunyema at a media brief said the company had big financial losses of N$700 million by 31 March 2023 because they did not have enough money to keep things running smoothly.
Ndeunyema explained that they looked into the reasons for the money troubles and found ten main causes, mostly linked to changes in the market and problems with how they managed things internally.
NAMCOR’s plan has three parts. The first is to quickly fix urgent issues and get help from its shareholders. Then, they will work on a new way of operating to prevent future problems. The last part is a long-term plan for the next 15 years to make sure NAMCOR stays strong, especially with new oil discoveries and energy changes.
Ndeunyema also said that they have managed to avoid shutting down by making a deal with a key supplier in the first part of their plan. The next steps aim to make sure NAMCOR is stable in the long run and makes the most of its oil and gas resources.
“As of March 31, 2023, the corporation faced a significant working capital deficit, with a creditor’s book of N$2.5 billion. Through meticulous sales planning, robust margin and profitability analysis, and strategic debt restructuring, NAMCOR successfully reduced this amount to N$1.9 billion by September 2023,” he said.
According to him while the company currently enjoys a positive gross profit position, associated defaults in supplier payments necessitate timely shareholder intervention to avoid further interest on the debt.
“The Turnaround Strategy is poised to restore financial health and secure a sustainable future for NAMCOR,” he concluded.
