Wednesday, October 28, 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.

Hot this week

Production up, but the ‘cost’ variable weighs heavily

Production is up in 2021 for the Italian agricultural...

Luminos Fund’s catch-up education programs in Ethiopia recognized

The Luminos Fund has been named a top 10...

Well-planned cities essential for a resilient future in Africa concludes the World Urban Forum

The World Urban Forum (WUF) concluded today with a...

Private sector deemed key to unlocking AfCFTA potential

The private sector’s role is vital to fully unlock...

Ethiopia targets 4.4 million off-grid connections under new electrification plan

Ethiopia has officially launched its National Electrification Program 3.0...

Weighted average dollar rate falls to 159.70 birr in NBE latest auction

Ethiopia’s weighted average exchange rate for successful bids in...

After three decades, UN mission in Somalia prepares to close operations

The United Nations Transitional Assistance Mission in Somalia (UNTMIS)...

No African Country Meets Malabo Agricultural Development Benchmark, FAO

No African country met the overall agricultural development benchmark...

Ethiopia’s Electrification Progress Outpaces Its Enabling Conditions

Ethiopia’s deployment of electrification is running ahead of the...

Deadly Moyale border clashes displace over 14,000 in Southern Ethiopia

Clashes in the border town of Moyale have displaced...

Ethiopia’s growth outlook strong, but businesses face currency and execution risks

Ethiopia is projected to post one of Africa’s strongest...

Ethiopia ranked “Not Free” in freedom house’s 2026 report with a dismal score of 30

Ethiopia remains categorized as “Not Free” in the latest...
spot_img

Related Articles

Popular Categories

spot_imgspot_img