Electricidade de Moçambique (EDM) Records US$27.1 Million Loss

  • Electricidade de Moçambique (EDM), Mozambique’s state owned energy utility has recorded a US$27.1 million loss for 2019 (two billion meticais), making it the fifth consecutive year that the utility has recorded a loss.
  • In its 2019 Annual Report (in Portuguese), published last week, EDM’s Fiscal Council states that, in fact, the loss represents a reduction of 61.5% compared to 2018.
  • Impacts of Covid-19 not quantifiable at this time.

EDM’s balance sheet for 2019 shows that the company’s total assets stood at 228.6 billion meticais until 31 December 2019 (compared to 215.2 billion meticais in 2018), against a total liability assessed at 155.5 billion meticais (compared to 129.4 billion meticais in 2018).

Loans obtained by the company amounted to just over 551 million meticais in 2019, a reduction when compared to 2018, in which the debt reached 1 billion meticais. EDM’s equity, in turn, fell from 85.8 billion meticais in 2018 to 83 billion meticais in 2019.

The independent auditor Ernest & Young, emphasises that “due to the declared pandemic of Covid-19, there has been, in 2020, a significant instability in the financial markets and in economic activity, whose future impacts are not quantifiable at this time”.

Link to the full report HERE (in Portuguese)

Author: Bryan Groenendaal

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