Global oil price movements weigh on Engen

According to the managing director of Engen, Chimweta Monga the company’s net profit before tax decreased by 25% to P63.9 million during the period under review compared to P83.8 million the previous year.  He attributed this to inventory gains being lower than the comparative period in 2016 due to movements in international crude oil prices. Monga also decried government’s reduction of one of the slate cost recovery elements for product movement from South Africa to Botswana for a period of two months during the course of the half-year.

He said growth in the mining sector has remained subdued during the first half of the year mainly arising from the closure of BCL Mine at the end of 2016, noting that this resulted in a contagion effect on other sectors of the economy, which depend on this sector for purchase of their output. Earnings per share also decreased from 46.7 thebe per share during the same period in 2016 to 34.6 thebe per share for the period under review.