…turns-around after making a loss of N$93 million in the previous year
The Namibia Airports Company (NAC) has announced that it recorded a profit of N$19 million in the 2022/2023 financial year, this after having endured losses of in excess of N$93 million in the 2022 financial year.
The company announced this at its Annual General Meeting (AGM) held this week in accordance with the provisions of the Public Enterprises Governance Act (Act No. 1 of 2019) (PEGA.
“The NAC Annual Financial Statement (AFS) highlighted several positives, notably that the company has turned around from a loss-making position of N$93,697,664 recorded in 2022 to a profit-making position of N$19,446,446 recorded in 2023,” the company said in a statement adding that the NAC has navigated through tough economic headwinds and is gradually returning to normal operations having achieved 73% or pre-Covid levels as at 31 March 2023.
As at October 2023 operations stood at 85% pre-Covid levels and the company envisages to achieve 90% by the end of the current financial year.
Iipumbu Shiimi, the Minister of Finance and Public Enterprises, Titus Ndove, the Executive Director: Ministry of Finance and Public Enterprises, Louise Shixwameni, the Deputy Executive Director: Ministry of Finance and Public Enterprises, the NAC Board of Directors, NAC Chief Executive Officer, Bisey /Uirab, NAC Management and various representatives from the Ministry of Works and Transport and the Ministry of Finance and Public Enterprises, attended the meeting.
The NAC’s External Auditors, Grand Namibia conducted the audit of the audited consolidated financial statements (“AFS”), for the 2022/2023 financial year which provided an unqualified opinion on the AFS. These AFS include the pertinent audit opinions. This is the third consecutive year the NAC achieved an unqualified audit opinion and is testament to the company’s’ concerted efforts towards sustainable cost containment strategies without compromising adherence to accounting and corporate governance principles and standards.
“The reports presented by the NAC provides an overview of the transitional journey and good efforts employed by the NAC to ensure sustainability and maintain good corporate governance. I thank the Board of Directors for oversight and leadership provided to the NAC and appeal that they continue to provide the oversight and support to the NAC,” states Minister Iipumbu Shiimi.
CEO Bisey /Uirab, states that, the NAC has celebrated a number of significant events over the 2022/2023 financial year, two of which was that the NAC has been issued with substantive aerodrome certificates valid for the next two (2) years, in respect of Hosea Kutako International Airport (HKIA) and Walvis Bay International Airport and that in June 2024 the NAC will host to coveted AviaDev Africa Conference, an annual aviation development conference aimed at connecting industry experts to discuss and devise strategies to improve connectivity within the African continent.
NAC Board of Directors Chairperson Dr Leake Hangala adds that the company has maintained stability, amidst the evolving local and international challenges.
“I would like to express our sincere gratitude and appreciation to our Shareholder for entrusting the NAC Board to lead, guide, and steer the organization in delivering its mandate. The financial support from government is highly appreciated and our hope is that this would continue to aid the NAC in realising the various capital projects”, Dr Hangala states.
The NAC is committed to improve its airport infrastructure to support the country’s national development initiatives and harness the natural resources brought about by the recent oil and gas discovery together with the Green Hydrogen initiatives.
The envisaged airport infrastructure developments include among others: The Hosea Kutako International Airport congestion alleviation project to extend the VIP/VVIP facilities at the cost of N$18 million; the Apron expansion at Hosea Kutako International Airport at a cost of N$100 million, funded by Government over a two-year period; the construction of Terminal 3 at Hosea Kutako International Airport, with discussions ongoing with government to determine the optimal financing structure for the project and the finalisation of the transfer of land to NAC for the construction of new terminal buildings at Katima Mulilo, Rundu and Lüderitz Airports.
Other significant focus areas include the review of the current Integrated Strategic Business Plan (ISPB) and development of a new 5-year ISBP inclusive of current and future national and global initiatives, development of Master Plans for all eight (8) airports and continued collaboration with stakeholders towards the establishment of an aviation training Centre of Excellence in Namibia. This project is being driven by the Namibian-Finnish private and public sectors.
Through these and more the NAC continues to show commitment to deliver on its mandate and attain its strategic objectives.