Thursday, August 20, 2026

Ethiopian Shipping posts record profit despite regional security disruptions

By Muluken Yewondwossen, Photo by Anteneh Aklilu

Ethiopian Shipping and Logistics (ESL) reported a sharp rise in profit for the 2025/26 fiscal year, overcoming regional conflicts, security threats and operational disruptions that affected its shipping activities.

According to the company’s unaudited annual performance report, ESL generated 157.2 billion birr in revenue after transporting more than seven million metric tons of cargo, achieving 108 percent of its annual target.

The state-owned logistics giant posted an unaudited net profit of 25.4 billion birr, significantly exceeding its planned profit of 17.5 billion birr. The result represents an increase of roughly 45 percent over the target, highlighting stronger-than-expected financial performance despite a challenging operating environment.

Presenting the annual report, Chief Executive Officer Abdulber Shemsu said the company faced multiple setbacks during the fiscal year. Among the major challenges were the prolonged grounding of one of its vessels for more than four months and fuel shortages that disrupted operations.

Despite those difficulties, he said the company’s efforts to improve operational efficiency and strengthen profitability helped offset potential financial losses and protected overall earnings.

ESL also generated USD 551 million in foreign currency revenue during the fiscal year, an increase of at least USD 50 million compared with the previous year.

The company noted that regional geopolitical tensions also affected its operations. The temporary disruption to maritime traffic linked to the Strait of Hormuz forced adjustments to some shipping services, adding pressure to an already difficult operating environment.

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