- Engen Botswana's revenue increased by 80% in 2022
- Botswana's economy is expected to recover with a 4% growth
- Engen Botswana maintains a significant market share in a competitive industry
Johannesburg- Engen Botswana, the leading petrochemical investment and property operation company in Botswana, has announced its financial results for the year ending 31 December 2022. The company recorded an impressive 80% increase in revenue, mainly due to increased volumes arising from the removal of Covid-19 regulations on 1 October 2021. Additionally, foreign exchange gains increased from P2.5 million (US$ 185,542) at the end of 2021 to P9.4 million (US$ 697,773) at the end of 2022.
Engen Botswana's annual financial statements have been prepared in accordance with International Financial Reporting Standards ('IFRS') and the requirements of the Companies Act of Botswana. The accounting policies have been applied consistently compared to the prior year. The group exercised good margin management and cost control throughout the year.
The Botswana government has implemented various measures to support the economy, including the Economic Recovery and Transformation Plan (ERTP). The plan aims to stimulate economic growth by creating jobs, enhancing productivity, and promoting diversification. According to the World Bank, Botswana's economy is expected to recover with a projected growth rate of 4% in 2023.
The increase in revenue for Engen Botswana is a positive sign for the overall economy, indicating a potential increase in general income levels and consumer spending. With the lifting of Covid-19 regulations, Botswana's economy is expected to improve further, leading to more opportunities for growth in the current financial year.
Engen Botswana faces competition in the fuel sector, with several mainstream companies operating in the petrochemical industry. However, the company has managed to maintain its position in the market, with a significant market share by outlets.
In terms of pricing, there were several price adjustments as a result of the global crude oil price movements, and an industry margin adjustment was affected in September 2022 for price-controlled products. Non-price-controlled products had market-related price adjustments.
In conclusion, Engen Botswana's financial results for the year ending 31 December 2022 are impressive, reflecting the company's strong position in the competitive petrochemical industry in Botswana. The country's economy is expected to recover further, creating more opportunities for growth in the current financial year.
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