Portuguese companies focus on Angola

5 September 2007

Lisbon, Portugal, 5 Sept – Portuguese group Espírito Santo expects turnover of US$400 million over the next three years in Angola after in 2006 posting revenue of US$136 million there, Portuguese financial newspaper Diário Económico reported, citing the Financial Times.

The profits, the newspaper added, are expected to rise 10-fold reaching US$70 million.

Escom, which is the company created by Espírito Santo in 1993 to renew its presence of over 100 years in Angola, as well as a mine in northern Angola, owns a further 14 diamond concessions in partnership with Australia’s BHP Billiton, and is also involved in the real estate and construction sector.

In its turn, construction company Mota-Engil, which expects turnover of US$298 million this year, is one of several Portuguese construction groups in Angola – a market which is expected to account for the second-highest turnover in the group’s consolidated results.

The group is currently diversifying beyond its traditional core of construction by focusing on the internationalization of Martifer, the group’s new business for the industry and energy sectors.

Meanwhile, pulp and paper company Portucel-Soporcel is once again analyzing the possibility of industrial investment in Angola’s Huambo province.

O projecto passa por investir numa fábrica de pasta de papel. The potential project involves building a pulp factory.

As well as this, Portuguese oil company Galp, despite have a vast asset portfolio in the oil exploration and production area, sees Angola as its most important market.

Bloc 14, in which it has a 9 percent share, guarantees production of 12,000 barrels per day for the Portuguese oil company, a figure which represents growth of, at least, 3,000 barrels in relation to what was expected in 2006.

According to the latest figures, Galp’s proven reserves, concentrated in bloc 14, total 35.6 million barrels. In Angola alone, the Portuguese oil company has invested some US$850 million, of which US$220 million were invested this year, which makes it the biggest Portuguese investor in the country. (macauhub)