Erongo RED declares dividends of N$10.2 million
By Adolf Kaure.
Erongo RED recently announced that it has declared dividends of N$10.2 million to its shareholders. This comes after a net profit of N$46 million in 2023, compared to a loss of N$19 million in 2022.
The loss in the prior year was attributable to an increase in tax due to a once-off correction in the treatment of bulk upgrade prepayments made to NamPower.
The regional distributor’s revenue increased by 8% from N$1.402 billion in 2022 to N$1.508 billion in 2023. Cost of sales increased by 9% from N$1.127 billion in 2022 to N$1.227 billion in 2023.
The increase in gross profit is mainly due to the reduction in operating expenses from N$229 million in 2022 to N$217 million in 2023.
According to Erongo RED’s Chief Executive, Tino Hanabeb, the allocation of the dividends was considered and approved on 15 December by the Erongo Red board in line with the provision in the Dividends Policy.
“Subsequently, the Shareholders received and adopted the recommendation by the board on 29 February.”
“Therefore, I am thrilled to announce to you and by extension to the general public that due to the improved financial position of the company, we are in a position to pay dividends of N$10.2 million to our esteemed shareholders.”
“The decision to pay dividends marks a significant milestone for our company, especially considering the challenges we have faced during and after COVID 19.” While we may have had to forego dividends in previous years, declaring dividends this year is a testament to our commitment to creating value for our shareholders,” said Hanabeb.
In addition, to the dividends declared for the 2022/2023 financial year, Erongo RED also created value of over N$62 million which was paid to shareholders in the form of surcharges and royalties.
“Dual financial and social presence will always be at the heart of our business model. The strength of our financial performance in the 2023 financial year has allowed us to maintain our corporate citizenship to contribute positively to the well-being of the communities in which we operate,” said Hanabeb.
“During the period under review, we have provided subsidies to our pensioners and vulnerable members of our communities to the tune of N$24 million. In addition, nearly N$500 000 was spent on various corporate social responsibility activities within the region.”
“Furthermore, the company continues to provide support to aspiring young ones from our communities through graduate programmes and job attachment opportunities. As a company, we are proud of our active role in supporting our communities,” he continued.
Erongo RED was formed through a merger of the electricity suppliers and distributors in the region.
Arandis Town Council, the Henties Bay, Karibib, Omaruru, Swakopmund, Usakos, and Walvis Bay Municipalities, and the Erongo Regional Council and NamPower became shareholders of Erongo RED as part of the process to improve service delivery by pooling human and capital resources, continuous investment in electricity infrastructure, job creation and value creation for shareholders.
Erongo RED Chief Executive, Tino Hanabeb (second from right) with the Regional Councillor for the Swakopmund Constituency, Hon Louisa Kativa (on the left in blue) and Erongo Regional Governor, Hon Neville André (right) during Erongo RED’s connection of electricity to residents of Swakopmund’s DRC informal settlement. (Photograph by Adolf Kaure)
