ANIREP finally turns cash-flow positive

Renewable energy group Alpha Namibia Industries Renewable Power (ANIREP) has reported positive operating cash flow for the first time, as revenue rose 36% to N$95.4 million for the year to 28 February.

The Namibia Securities Exchange-listed company said the milestone reflected its shift from building solar plants to running them, with its newly-completed Khan plant near Usakos now supplying electricity to state utility NamPower under a long-term power purchase agreement. A second offtake deal with CENORED, the regional electricity distributor, also contributed to the increase.

Despite the improved cash position, ANIREP's loss for the year widened to N$52.2 million, from N$39.8 million a year earlier. The company said the wider loss was driven by a N$40.2 million non-cash impairment against Anirep Aussenkjer Solar One Namibia, the entity that owns the Khan plant, after management revised its assumptions on carbon credit revenue and a contractual clawback mechanism linked to the NamPower agreement.

ANIREP said the impairment did not reflect any deterioration in the plant's operational performance and that part of the writedown could be reversed in future periods if the relevant revenue arrangements materialise.

Separately, the company recognised a N$51.3 million credit loss allowance against a shareholder loan to a subsidiary, reflecting the same underlying assumptions used in the impairment assessment.

The group's gearing ratio, a measure of debt relative to equity, rose to 99%, close to the 100% threshold set by lenders. ANIREP said there had been no breach of its financial covenants during the year.

Shareholders have since approved, in principle, a plan to convert up to N$173 million in shareholder loans into equity, which would reduce the group's leverage. The board has been asked to evaluate the structure of the conversion and report back to shareholders.

ANIREP also made its first move into wind power during the year, with subsidiary Zephyrus Energy acquiring a 45% stake in the Cerim Lüderitz wind project for N$60 million. A further N$40 million is due once the project reaches financial close, expected around January 2027.

No dividend was declared for the year.