Online Reporter
Columbus Mabika-Herald Reporter
STATE-OWNED National Oil Infrastructure Company of Zimbabwe (NOIC) yesterday declared a dividend of nearly US$10,9 million to Mutapa Investment Fund (MIF) after a year of extraordinary performance in product sales.
NOIC is among 22 Government parastatals that are under the Mutapa Fund.
In a media briefing after yesterday’s annual general meeting, NOIC board chairman Air Vice Marshal (Retired) Innocent Chiganze said the dividend declaration was a result of a solid performance by the company in the period under review.
“After successful deliberations in the meeting, we are happy to have declared a dividend, and we are going to be declaring more as performance will be enhanced by increased trade,” he said.
Air Vice Marshal (Rtd) Chiganze said the Mutapa Fund is generational, for the current and future generations, aimed at having a long-term stabilisation effect in macro-economy.
Shareholders noted that the growth in revenue is testament to the company’s effective strategies and operational efficiency.
“The National Oil Infrastructure Company (NOIC) has reported an impressive performance across various key areas, underscoring its commitment to growth, innovation, and sustainable development. “Financially, the company achieved remarkable growth, with total revenue increasing by 87,8 percent to ZiG8,1 billion compared to ZiG4,3 billion in the prior year,” reads the statement.
NOIC’s strong performance has also been attributed to its good corporate governance practices, with a culture rooted in accountability, respect, efficiency, ethics and values.
The NOIC board and CEO have signed annual performance contracts, as part of their commitment to good corporate governance.
The Office of the Auditor General issued a clean bill of health on NOIC’s financial statements.
NOIC shareholders noted that the achieved a record-breaking 2,3 billion litres during the year, surpassing all previous years following the pipeline upgrade project that also bolstered regional trade.
“The company is set to pump a total of 2,7 billion litres this year, driven by the capacity increase to 3 billion litres and continual process optimisation.
“The pipeline capacity upgrade project, which aims to increase fuel infrastructure in Zimbabwe and bolster regional trade ties, is a significant milestone in the company’s growth trajectory,” said the shareholders.
The pipeline project is being implemented in phases, with the second phase underway to ramp up the pumping capacity to 5 billion litres over the next two years.
The company’s transit volumes performance has also been notable, with a significant increase in transit volumes to 528 million litres in 2024, driven by increased product pumping for the domestic market and regional hinterland markets.
Shareholders also noted that NOIC’s dedication to establishing Harare as a fuel distribution hub in the Southern African region by 2025 is evident in its efforts to facilitate the transportation of fuel for traders intending to supply other SADC countries.
In the LPG segment, NOIC exceeded budget by 16,3 percent with 698 tonnes sold against a target of 600 tonnes for the year ending December 31, 2024.
The expansion of the distribution network and investment in infrastructure, including 20-tonne LPG tanks in five major cities, aims to increase access to clean, affordable energy across the country have led to milestones in this sector.
MIF deputy chief investment officer, Mr Enerst Denhere, who received the dividend on behalf of the Fund said the significant dividend was testimony of good results in a trading year.
“We at Mutapa Investment accept and appreciate this dividend which represents about 30 percent of the total profits that the NOIC has declared to us, thus testimony of good performance in all the matrices in terms of volumes that speaks to the financial performance in the period under review.
“It was pleasing to have a significant dividend,” he said.
