EPSE Revenue Nears Half-Trillion Mark As Stabilization Fund Claims Top 40bln Birr

The state-owned Ethiopian Petroleum Supply Enterprise (EPSE) generated more than 457 billion Birr in revenue during the 2024/25 fiscal year, according to newly released audited financial statements, while also claiming over 40 billion Birr from the fuel price stabilization fund to offset mounting fuel supply costs.

The financial statements for the year ending 30 June 2025 show that EPSE recorded 457.35 billion Birr in revenue from contracts with customers, nearly doubling the 259.37 Billion birr reported a year earlier.

However, the report reveals that the cost of supplying petroleum products exceeded sales revenues at EPSE, which is the country’s sole importer of petroleum products.

Cost of sales reached 496.14 Billion birr, creating a significant operational gap that was partially offset through government support mechanisms.

To bridge the deficit created by global fuel price fluctuations and domestic pricing policies, EPSE recorded 40.39 billion Birr in claims from the fuel price stabilization fund, a sharp increase from 11.9 billion Birr the previous year.

Despite the heavy cost burden, the Enterprise ultimately posted a net profit of 1.06 billion Birr, slightly higher than the 994 million Birr recorded the previous fiscal year.

Its total assets more than doubled, rising to 384.55 billion Birr in 2025 from 190.35 billion Birr in 2024, reflecting rapid expansion in working capital and fuel-related financial flows.

One of the most striking changes was the surge in receivables linked to the fuel price stabilization mechanism. The report shows 183.56 billion Birr recorded as receivable from the fuel price stabilization fund, compared with 55.84 billion Birr in the previous year, underscoring the growing fiscal exposure of the fuel subsidy system.

At the same time, inventories more than doubled, rising to 34.54 billion Birr from 15.8 billion Birr, reflecting larger petroleum stock holdings across the national distribution system.

Deposits and prepayments also increased dramatically to 36.91 billion Birr, up from 7.53 billion Birr the previous year.

The Enterprise, which operates under the umbrella of Ethiopian Investment Holdings (EIH), reported a significant increase in cash resources. The financial statements indicate cash and cash equivalents reaching more than 418.5 billion Birr, more than four times the previous year’s figure.

Net cash inflows from operating activities totaled 19.91 billion Birr, driven largely by changes in working capital and large movements in receivables and payables related to petroleum imports and distribution, according to the report.

Major working capital adjustments included a 18.74 billion Birr increase in inventories, a 127.7 billion Birr jump in receivables linked to the fuel stabilization fund, a 29.38 billion Birr increase in deposits and prepayments, and a 195.53 billion Birr increase in trade and other playables.

The report also shows that total liabilities reached 380.65 billion Birr, nearly doubling from 186.45 billion Birr the previous year.

The majority of this amount consists of trade and other payables totaling 365 billion Birr, suggesting heavy reliance on short-term obligations to finance fuel procurement and distribution.

Other liabilities include 9.7 billion Birr in taxes on petroleum products, 484.8 million Birr in other taxes payable, 3.88 billion Birr in contract liabilities, and 1.42 billion Birr in state dividend obligations.

Although the Enterprise recorded a profit for the year, the amount was transferred as a state dividend in its entirety, leaving EPSE’s equity position unchanged at 3.9 billion Birr.

This mirrors the previous fiscal year, when 994 million Birr in profit was similarly transferred to the state, indicating that all net earnings continue to flow directly into government coffers rather than being retained for reinvestment.

The financial statements also show ongoing investments in fuel infrastructure.

Spending on property, plants, and equipment reached 601.4 million Birr, while 525.9 million Birr was invested in capital work-in-progress projects, including the Dukem fuel depot project.

The Enterprise currently holds nearly 705 million Birr in capital work-in-progress related to infrastructure expansion and logistics upgrades aimed at strengthening Ethiopia’s petroleum storage and distribution capacity.