The Financial Results of Hidroeléctrica de Cahora Bassa, SA (HCB) amounted to 1,504.66 million Meticais in the first half of 2024, representing a positive variation of 1,837.3% compared to the same period in 2023.

According to HCB's operational and financial performance report, this result derives from income from financial investments combined with the effect of the appreciation of the South African Rand against the Metical.

In this context, HCB's net profit between January and June 2024 amounted to 8,961.13 million Meticais, 56.7% higher than in the same period in 2023. "As a result of this financial performance in the first half of the year, it is estimated that net profits by the end of the year will be at the budgeted level, i.e. 13,851.68 million Meticais," says the company's report consulted by MZNews.

In terms of sales, from January to June 2024, they stood at 7,628.32GWh, 6.2% and 3.5%, above the level reached in the same period of 2023 and that planned for the period, respectively.

Income and Gains stood at 19,445.56 million Meticais, 37.3% higher than in the same period in 2023, which, according to the report, is due to the tariff adjustments seen in the second half of last year and at the start of this year.

In terms of Operating Expenses, HCB spent close to 7 million Meticais in the first six months of this year, 19.7% more than in the same period in 2023. The company explains that this was due to the implementation of the Transformation Project combined with the increase in the concession fee, which rose due to the increase in sales.

"The balance sheet, as well as the liquidity and solvency indicators, demonstrate financial equilibrium in the short, medium and long term," the company's report states.

According to the document, the increase in Equity is influenced by the increase in retained earnings. The reduction in Non-Current Liabilities is due to the early settlement of the EDF loan taken out for the rehabilitation of the HVDC lines, following the end of the country's civil war. Current liabilities varied by 76.2% essentially as a result of the variation in taxes payable, which is associated with the increase in net profits.

The profitability and liquidity ratios continue to demonstrate the company's significant strength. The reduction observed in general liquidity and solvency is due to the tax estimates for the period.

On the other hand, the ROA and Operating Margin ratios show that the company's operating results were solid and increased up to June this year, compared to the same period last year.

With regard to the profitability ratios of the share, we would highlight the significant increase in earnings per share resulting from the impact of the tariff adjustment, the discipline in controlling costs and the maximization of investments in excess liquidity, all of which led to an increase in net income.

During the period under review, the value of the company's shares increased on the Mozambique Stock Exchange by around 61%. Despite this significant increase, there is still a significant gap between the listed value and the book value of the share, the latter being relatively higher.