Engen Limited has told its shareholders to anticipate higher profits before tax for the 2021 financial year.
In a statement to the shareholders, the listed petroleum company advised its shareholders that the profit before tax for the year ended 31 December 2021 of P354.8 million will be 141 percent or P207.6 million higher than the P147.2 million reported for the year ended 31 December 2020.
Engen Botswana Chairman, Dr Shabai Ndzinge, said the increase in profits is mainly attributable to the streaming of new retail facilities and business activity that occurred subsequent to COVID-19 lockdowns.
Also, the significant increase in global crude oil prices during the year contributed to higher profits.
“In addition, good margin and operating expense management contributed to the improved profitability. As a result, the gross profit has increased by 96 percent from P233.1 million to P457.6 million from 2020 to 2021 respectively,” said Ndzinge.
In 2021, international crude oil prices increased as the effects of COVID-19 abated, having started the year at USD50 per barrel before increasing to a high of USD86 per barrel in October before slightly going down in the final months of the year.
This led to numerous increases in fuel prices in the country last year.
Moreover, global petroleum production is said to have increased more slowly than demand, which drove prices higher.