Alpha Namibia Industries Renewable Power Limited (ANIREP) posted a profit before tax of N$28.7 million during the year ended 28 February 2023, a significant increase compared to the restated figure of N$6.6 million in the previous year.
The group recorded an operating profit of N$43.1 million for the year while basic earnings per share rose to 72 cents during the year under review from 10 cents in the year ended February 28, 2022 (restated).
The company recorded a 29% increase in normalised operating profit, amounting to N$27.7 million compared to N$21.5 million in the previous year.
Similarly, normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 22%, reaching N$37.9 million from N$30.9 million in the previous year.
Managing Director of ANIREP Iyaloo Nangolo said the company’s core annuity revenue is derived from the independent power producer (IPP) sale of electricity and operations and maintenance (O&M), which remained steady at N$51.3 million.
“ANIREP Solar (Pty) Ltd continued to generate a consistent income of N$38.1 million through power purchase agreements (PPAs) with NamPower and CENORED, which are valid until 2040 and 2041, respectively. The focus on growing annuity income led to a 10.64% increase in recurring O&M revenue for HopSol Africa, amounting to N$13.2 million,” he said.
Revenue for the period came in at N$79 million.
Nangolo said the company’s Engineering Procurement and Construction (EPC) revenue fluctuated due to the completion of specific projects dropping from N$207 million to N$27 million.
“It decreased by 86.6%, reaching N$27.6 million for the year, as the previous year’s revenue included income from the Omburu 25MWp PV Power Plant. However, the company expects significant revenue realization in the next financial year from the construction of another 25MWp PV Power Plant,” he explained.
However, despite the decrease, he asserted ANIREP demonstrated resilience and achieved significant milestones despite the additional challenging economic climate caused by the Covid-19 pandemic.
One of the notable achievements for ANIREP was the increase in gross profit, reaching N$65.2 million at a margin of 88%, surpassing the previous year’s margin of 31%.
“This improvement can be attributed to better returns from projects currently under construction by HopSol Africa (Pty) Ltd. The cost of equipment and shipping lines improved after the initial impact of the pandemic, leading to higher profitability,” said the financial report.
ANIREP’s EBITDA experienced substantial growth, reaching N$53.2 million, representing a 71% increase from the previous year’s restated EBITDA of N$31 million.
The company’s long-term power purchase agreements played a vital role in generating consistent cash flow, aligning with the nature of the business.
“We are pleased with the financial performance of ANIREP, as it reflects our commitment to providing investors with stable and long-term yielding investments in the renewable energy sector,” stated Nangolo.
“Our focus on building a strong foundation and generating sustainable cash flows has positioned us as a leader in the market.”
Looking ahead, ANIREP remains optimistic about its future prospects. The company plans to launch a rights issue to raise additional capital, aiming to expand its generation capacity to nearly 100 MWp.
The strategic direction of ANIREP aligns with Namibia’s goal of becoming a net exporter of renewable electricity by 2030, capitalizing on the country’s abundant wind and solar resources.
“We are committed to driving the renewable energy sector forward, exploring acquisition opportunities, and engaging in EPC and O&M projects to enhance shareholder value,” said Nangolo.
“ANIREP’s vertically integrated structure as an IPP and owner of a leading EPC company positions us to provide affordable renewable power, contributing to Namibia’s sustainable energy future.”
