Thursday, September 28, 2023
BusinessEnterprises under ministry supervision combined profit hits over 1.2 bln birr

Enterprises under ministry supervision combined profit hits over 1.2 bln birr

The state-owned monopoly Ethiopian Shipping and Logistics Services Enterprise (ESLSE) has become the most profitable enterprise under the supervision of the Ministry of Public Enterprises (MoPE) amassing 684.9 million birr profit before tax for the first half of the current fiscal year.

The combined profit of all State-owned Enterprises (SoE) under the ministry has soared to 1.2 billion birr in the stated period.

ESLSE has surpassed its profit targets by 117 percent, which was 585.7 million birr, according to Wondafrash Assefa, corporate communications head of the ministry. Benefiting from the controversial multimodal transport system, which brings together both maritime and inland transport of goods and services to and from the country, ESLSE has managed to stand out as the biggest revenue earner.

Meanwhile, the oldest printing press, Berhanena Selam Printing Enterprise is the most successful in terms of achieving its profit and revenue targets registering a whopping 126.3 percent of its projected profit for the six month period.

Berhanena Selam has managed to gross 64.4 million birr profit before tax while its target was to hit 50.9 million birr for the stated period. In terms of revenue, the printing press’s intake has soared to 235.1 million birr surpassing its target of 205.5 million birr.

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Meanwhile, National Alcohol and Liquor Factory was said to be the second performer in terms of relative profitability (in comparison to its targets) while ESLSE clinched the third position. The first and second runners-up have also managed to achieve 120 and 117 percent of their targets, respectively, according to the ministry.

According to its half year performance report, SoEs under the supervision of the ministry have bagged a profit of 1.24 billion birr from sales of products and service made by state-owned enterprises under it supervision during the first half of the fiscal year.

In its report the ministry further indicated that the total profit from the SoEs has so far achieve 92 percent of the target which was set at 1.36 billion birr.

The report also showed that the combined revenue of the enterprises has soared to 16.8 billion birr during the stated period, achieving 81 percent of the target allotted for the half year (20.2 billion birr).

In fact, there are other state entities that generate much more revenues (and subsequently profits) for the government. The likes of Ethio Telecom, Commercial Bank of Ethiopia and Ethiopian Airlines have grossed 21.5 billion, 14 billion and six billion birr profit, respectively, in the previous budget year.

MoPE also announced that, as per its plans, during the report period, it has continued with its privatization drive and transferred enterprises which have been under the government’s holdings. So far this year, the ministry has fully transferred Artistic Printing Enterprise to its new private owner. The printing enterprise was acquired jointly by Feleke Trading PLC and Corporate Computer PLC in the previous year after they were declared to have won the bid for 328,888,444 million birr. Similarly, in the same report period, the ministry carried out the transfer of 40 percent of the stake the government had in the National Tobacco Enterprise to Japan Tobacco Inc. for 11.36 billion birr. Similarly, the 33 percent share the government had at Ambo Mineral Water SC was also handed over fully to Ambo International Holding Ltd. which was said to have acquired the shares for 444,472,152.777 birr.

In addition, there are also other companies that were transferred over the first half of the fiscal year such as the Bilito-Siraro Mechanized Farm which was sold to Oromia Regional States with the latter agreeing to pay its estimated value of 62,662,303 birr. The Tigray Regional State, on the other hand, took over the Abrha Castle Ghion Hotel (located in Mekelle town) valued at 2,690,200 birr.

During the report period, around 11.8 billion birr has been collected from the already privatized enterprises, though original target was to collect a little over 1.3 billion birr, according to the ministry.

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