Erongo Regional Electricity Distributor has declared dividends of N$10,2 million.

The announcement was made by Erongo Red's Chief Executive, Immanuel !Hanabeb, in Walvis Bay.

!Hanabeb stated that during the period under review, the company provided subsidies totaling N$24 million to pensioners and vulnerable individuals. Additionally, nearly N$500,000 was spent on various corporate social responsibility activities, including graduate programs and job attachment opportunities. 

Erongo Regional Electricity Distributor's strategic intent is to provide electricity for economic growth and reshape the region's socio-economic structure.

!Hanabeb explained that the company is guided by four strategic objectives: improving financial sustainability, enhancing stakeholder focus and collaboration, improving organizational excellence and transformation, and developing talent and institutional capacity.

"Our revenue increased by 8% from N$1.402 billion in 2022 to N$1.508 billion in 2023. The cost of sales increased by 9%, from N$1.127 billion in 2022 to N$1.227 billion in 2023. The increase in gross profit is mainly due to the reduction in operating expenses from N$229 million in 2022 to N$217 million in 2023. As a result, the company made a net profit of N$46 million in 2023, compared to a loss of N$19 million in 2022.The loss in the prior year was attributed to an increase in tax due to a one-off correction in the treatment of bulk upgrade prepayments made to NamPower."

Over the past twelve months, Erongo RED has invested N$191 million in the operations of the business, including the upgrading and maintenance of electricity infrastructure.

"As municipalities and town councils that are shareholders of this company, our core business is to provide civic services to our communities. We are not driven by profits; rather, our focus is to provide services to our residents. These services include the maintenance of parks, roads, and other services. Therefore, the dividends received are used to supplement the municipality's efforts to enhance these services for the betterment of our society."