South African Nuclear Energy Corporation (Necsa) Annual...
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Dr Rob Adam Necsa Chairperson South African Nuclear Energy Corporation (Necsa) Annual Report Presentation PARLIAMENT, CAPE TOWN 5 March 2019
Transcript of South African Nuclear Energy Corporation (Necsa) Annual...
Dr Rob Adam
Necsa Chairperson
South African Nuclear Energy Corporation (Necsa)Annual Report Presentation
PARLIAMENT, CAPE TOWN5 March 2019
PRESENTATION OUTLINE
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Contents
Leadership
NTP Radioisotopes SOC Ltd Developments
Necsa Financials
2017/18 Audit Matters
Key turnaround priorities
Conclusion
LEADERSHIP CHANGES
Cabinet approved appointment of the Necsa Board on
5 December, 2018.
Full spectrum of expertise and experienced
professionals.
Appointed an Acting Chief Executive Officer from
7 December, 2018.
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NTP RADIOISOTOPES SOC LTD
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• Resumed operations in November 2018.
• Supplying local and global customers, while simultaneously focussing on improving its safety culture.
• This involves matters of enhancing technical and safety training, transparent stakeholder communications.
• Also, a review of all policies and procedures to ensure greater accountability at the appropriate levels.
• No customers lost, trust based on reliability of supply was severely eroded and market-share lost.
• Recovery estimated at least 18-24 months to rebuild.
• Exacerbated by mismatched expectations and leadership approach between Necsaand NTP.
• Resolved by the Ministry of Energy in 2018.
• NTP mostly shutdown from November 2017 to November 2018
NTP RADIOISOTOPES SOC LTD
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Programmes to ensure future sustainability that are in various stages of
execution and are now recorded in the NTP Strategic Plan
2019/20-22/23, include inter alia implementing:
► A Group Organisational Change Optimisation Programme in support of
executing on the Radiopharmaceutical and Africa Growth Strategy
► Launch Safety Culture Behaviour Change Communications & Activation
Programmes to support change management for safety but also the
overall organisational culture optimisation
NTP RADIOISOTOPES SOC LTD cont.
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Programmes to ensure future sustainability that are in various stages of
execution and are now recorded in the NTP Strategic Plan 2019/20-22/23,
include inter alia implementing:
► An improved organisational and Operational Governance & Risk Assurance
Systems & Processes aligned to global best practice
► An integrated engineering, waste & maintenance programme including fast
tracking Key Capital Projects to ensure plant sustainability and longevity
► A Customer Sales & Stakeholder Engagement, Retention & Acquisition
Programme to
first stabilise and then optimise existing API & Radiopharmaceutical Product
Sales.
FINANCIAL OUTCOMES - NTP
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1. Statement of Financial Position
COMPANY
2018 2017
R’000 R’000
Non-Current Assets 403 709 396 901
Current Assets 850 724 916 688
TOTAL ASSETS 1 254 433 1 313 589
Equity 1 001 678 1 000 204
Liabilities 252 755 313 385
TOTAL EQUITY & LIABILITIES 1 254 433 1 313 589
FINANCIAL OUTCOMES – NTP Cont.
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2. Statement of Comprehensive Income
COMPANY
2018 2017
R’000 R’000
Revenue 940 093 1 114 919
Total Comprehensive Income (loss) for the year 108 456 168 942
FINANCIAL OUTCOMES - NECSA
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1. Statement of Financial Position
GROUP COMPANY
2018 2017 2018 2017
R’000 R’000 R’000 R’000
Non-Current Assets 5 354 990 4 758 356 5 162 258 4 960 648
Current Assets 1 606 559 1 349 925 474 991 455 344
TOTAL ASSETS 6 961 549 6 099 281 5 637 249 5 145 992
Equity 1 196 983 1 104 344 26 296 88 928
Liabilities 5 764 566 4 994 937 5 610 953 5 057 064
TOTAL EQUITY & LIABILITIES 6 961 549 6 099 281 5 637 249 5 145 992
FINANCIAL OUTCOMES – NECSA cont.
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2. Statement of Comprehensive Income
GROUP COMPANY
2018 2017 2018 2017
R’000 R’000 R’000 R’000
Revenue 2 251 307 2 189 360 1 072 447 955 277
Total Comprehensive Income (loss) for the year
109 863 42 231 (62 632)(79
734)
FINANCIAL OUTCOMES - PELCHEM
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1. Statement of Financial Position
COMPANY
2018 2017
R’000 R’000
Non-Current Assets 35 735 44 613
Current Assets 90 407 80 776
TOTAL ASSETS 126 142 125 389
Equity 23 048 (56 404)
Liabilities 103 094 181 793
TOTAL EQUITY & LIABILITIES 126 142 125 389
FINANCIAL OUTCOMES - PELCHEM
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2. Statement of Comprehensive Income
COMPANY
2018 2017
R’000 R’000
Revenue 186 191 199 841
Total Comprehensive Income (loss) for the year (35 567) (33 115)
AGSA KEY AUDIT ISSUES
Non approval of conversion of Pelchem trade debt of R115million to Equity
as well as the disclosure thereof;
Non-Approval of R115 million impairment as well as additional impairment of
R19 million investment in Pelchem;
Non-Impairment of R80 million Low Enriched Uranium (LEU) Asset-in-
Progress;
Identified cut off revenue during the testing resulting in the entire population
of R388 million being rejected;
Lack of evidence to support going concern basis.
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KEY TURNAROUND PRIORITIES
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Re-focus the organisation on extracting value from nuclear technology
development and exploitation in specific impact areas.
Implement new business model to support nuclear research and technology
mandate.
Defer nuclear energy mandate to relevant time.
Liquidity and financial sustainability.
Entrenching corporate governance systems.
KEY TURNAROUND PRIORITIES
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Current Necsa Transition Plan Refocused Necsa
Unsustainable base
line
Organisation with
R&TD, and other
Divisions
Strategy focusses on
Impact Areas but not
reflected in structure
Derives synergy from
existing core skills
areas to innovate
towards products and
services in the
respective impact
areas.
Rebuilding basic
capabilities
Building synergy
between basic and
technological research
Sustainable baseline
Sustainable business
R&TD organization with
Divisions
Structured according to
research focus areas
Necsa activities linking
to predefined focus
CONCLUSION
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The 2017/18 Annual Report is glaring on challenges faced by Necsa.
Commitment from the Board to steer ship on the right track.
Necsa is responsible for South Africa’s key assets, such as the SAFARI-
1 Reactor.
Employs highly skilled scientists, especially in the nuclear field.
Additional resources have been allocated to deal with the 2018/19
audit.
CONCLUSION
■ Liabilities exceeding Assets
Audited Annual Financial Statements as at 31 March 2018, the
liabilities did not exceed assets.
However, going forward there is a likelihood that this may occur.
Audited AFS Necsa’s the total assets R 5 637 249 000 and total
liabilities R 5 610 953 000.
Group, total assets were R 6 961 549 000 and total liabilities were
R 5 764 566 000.
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