NamWater has reported a 0.7% increase in revenue for the fiscal year ending 31 March 2024, reaching N$2.112 billion compared to N$2.096 billion in 2023.
According to the NamWater Board Chairperson, Luther Rukira, the key contributors to this performance include N$855 million generated from operations and investments.
External ventures such as rental income from NamWater houses, technical vocational education training programs, and water sampling services at the Windhoek Laboratory contributed N$43 million, despite a decline from N$114 million in 2023.
Investment income also increased by 4.8% to N$130 million compared to N$124 million in the prior period.
“NamWater prioritises financial sustainability and diversified revenue diversification as crucial aspects of its streams, which are paramount to NamWater’s operations. For the fiscal year ending on 31 March 2024, NamWater generated N$2.1 billion, an increase from (2023-N$2 billion) in 2023,” he said.
He further explained that the financial performance highlights for the period show several significant changes.
The cost of sales increased by 24.5%, reaching N$604 million compared to N$485 million in 2023. Net income before taxation saw a sharp decline of 54.8%, dropping to N$100 million from N$221 million in the previous year.
Similarly, net income after taxation reduced by 50%, falling to N$81 million from N$162 million. Net cash generated from operations also decreased by 18.9%, amounting to N$222 million, down from N$274 million in 2023.
Additionally, operating expenditure rose by 11%, reaching N$2 billion, up from N$1.8 billion in 2023.
Treated and untreated water sales decreased by 3% to 85.2 million m³ (2023: 88.6 million m³), desalinated water sales rose by 15% to 14 million m³ (2023: 12.2 million m³), and irrigation water sales increased by 3.8% to 52.1 million m³ (2023: 50.2 million m³).
These variations reflect water availability and customer demand.
NamWater maintained its credit rating of BB- with a stable outlook.
The Corporation’s solvency and liquidity remain robust, with the current ratio increasing to 546% (2023: 509%).
Operating expenses, however, grew significantly, leading to a profit before tax reduction of 55%, from N$220.6 million in 2023.
Furthermore, NamWater continued its value creation efforts, prioritising employees and reserves to enhance service delivery.
Tariffs remained unchanged during the reporting period, with revenue growth driven by increased sales of desalinated and irrigation water.
The Corporation’s top five customers, including the City of Windhoek and Swakop Uranium, accounted for 60% of total revenue.
“The Corporation’s value creation continued during the period, with N$855 million created from operations and investments. The distribution of this wealth was skewed towards employees and reserves for operations. This is in line with our business being a service delivery entity, relying on its employees to provide a world-class service,” the company’s integrated report for FY23/24 read.
Cost containment, reduction, and debt collection strategies contributed to NamWater’s positive financial performance.
Despite inflationary pressures, the Corporation supplied water at an average cost of N$14.56/m³ (2023: N$14.51/m³).
NamWater said it invested N$252 million (2023: N$214 million) in property, plant, and equipment, with N$191 million (2023: N$153 million) allocated to water infrastructure.
The net cash inflow from financing activities totaled N$105 million, a significant improvement from the N$87 million outflow in 2023.
