Business Reporter
The National Petroleum Corporation of Namibia (NAMCOR) has said that, following the N$1.2 billion sovereign guarantee (a cash injection by the government), the state-owned oil company has successfully settled significant financial obligations with key suppliers. Notably, a down payment of N$550 million was made to Gunvor, restoring NAMCOR’s financial credibility and strengthening relationships with trading partners.
The Petroleum Corporation came under fire earlier this year after some of its suppliers, such as Gunvor, threatened to take action, including liquidation, to recover monies owed to them by NAMCOR. However, following government intervention, the state-owned entity has been able to settle significant debts to European suppliers, including Gunvor, to which NAMCOR owed N$1.1 billion.
“Namcor is pleased to provide a progress update on the significant strides made in its journey to becoming a world-class energy company. With a focused commitment to efficiency, growth, and accountability, NAMCOR continues to reform key areas of its operations, ensuring its competitive position both locally and globally. This year, 2024, has marked a pivotal point in NAMCOR’s transformation, as we address both internal and external challenges to build a stronger, more resilient company. From financial restructuring to operational realignment, we have taken major steps to turn around the company’s performance, foster accountability, and create a culture of excellence. Following a N$1.2 billion sovereign guarantee, NAMCOR successfully settled significant financial obligations with key suppliers. Notably, a down payment of N$550 million was made to Gunvor, restoring NAMCOR’s financial credibility and strengthening relationships with trading partners,” Paulo Coelho, public relations officer at Namcor, said.
He added that NAMCOR has implemented several operational improvements, including the integration of the Sales and Marketing, Supply, and Logistics departments.
“This move has streamlined operations, reduced redundancies, and improved coordination across the business. Additionally, cost optimisation initiatives have saved N$22 million in 2024,” Coelho said.
He added that renegotiation of key supplier contracts, including a revised Basic Fuel Price (BFP) agreement, has allowed NAMCOR to achieve economies of scale and increase its competitiveness. “The renegotiated terms are projected to increase gross margins by N$15 million over the next 12 to 18 months,” Coelho said.
Further to this, the spokesperson said that NAMCOR has implemented rigorous consequence management measures to address internal misconduct. “Legal proceedings have been initiated against former employees involved in misconduct, and several key positions have undergone disciplinary action. These actions demonstrate NAMCOR’s commitment to integrity and governance,” Coelho said.
