ANIREP posts wider annual loss

Alpha Namibia Industries Renewable Power Limited (ANIREP) has reported a loss of N$52.2 million for the year to February, wider than the previous year's N$39.8 million, despite revenue rising 36% to N$95.4 million.

The Namibia Securities Exchange-listed company said the loss was driven by a N$40.2 million non-cash writedown on its newest solar plant, even as operating cash flow turned positive for the first time.

A milestone, and a setback

ANIREP's 25-megawatt Khan solar plant near Usakos was completed during the year and now supplies electricity to state utility NamPower. The company said the plant helped push operating cash flow to N$15.1 million, from an outflow of N$38.1 million a year earlier, marking its shift from building solar plants to running them.

At the same time, the company revised its assumptions on carbon credit revenue and a contract clause tied to the NamPower deal, resulting in a N$40.2 million impairment. ANIREP said this did not reflect any problem with the plant itself, and that part of the writedown could be reversed if the expected revenue materialises.

Debt levels rising

The group's gearing ratio, which measures debt against equity, rose to 99% from 73%. A separate measure used to test compliance with lender covenants stood at 88%, against a 100% limit. ANIREP said it had not breached any of its financial covenants during the year.

Cash held by the parent company fell sharply, from N$131.1 million to N$7.8 million, as money was moved to subsidiaries and spent on construction projects. Shareholders have backed a plan, in principle, to convert N$173 million of loans into equity, which would help ease the group's debt levels.

Move into wind power

ANIREP also took its first step into wind energy during the year, buying a 45% stake in the Cerim Lüderitz project through a subsidiary, Zephyrus Energy, for N$60 million. A further N$40 million is due once the project secures financing, expected in early 2027.

No dividend was declared.