Debmarine Namibia faces N$7.1 billion loss amid market challenges

(Video of Debmarine Namibia’s Chief Executive officer, Willy Martens deliberating on the matter)

By: Hertha Ekandjo

Debmarine Namibia has recorded a loss of N$7.1 billion between 2023 and 2024. The company’s earnings before interest, tax, depreciation, and amortisation have fallen from N$6.76 billion in 2022, with market conditions alone stripping away N$2.3 billion in 2023 and another N$4.8 billion in 2024.

This was revealed thy Debmarine`s Chief Executive Officer, Willy Mertens during a business breakfast meeting earlier this morning in Windhoek.

Mertens revealed that natural diamond prices have plummeted by 35% below 2015 levels, with a further 50% reduction year-to-date in 2025.

He noted that in response to the slumping market, Debmarine adjusted its production, accordingly, reducing output by 13% year-on-year in 2023, and forecasting a potential further reduction of 5% in 2025.

A significant contribution to production came from the Benguela Gem, which produced 602,000 carats, accounting for 37% of total output from a fleet of just seven vessels.

Despite these measures, the financial performance of the company has suffered. Revenue has dropped by a staggering 38%, totaling N$8.3 billion, while earnings before interest, tax, depreciation, and amortisation has seen an 86% decrease, falling to just under N$1 billion (N$951 million).

The main culprits behind this decline are the ongoing price impacts and the rising costs of doing business.

“However, despite these financial challenges, Debmarine Namibia maintains a strong balance sheet, positioning itself for future growth when market conditions improve,” the CEO noted.

Over the past two years, the company has invested in new technology, including two new crawlers for the Benguela Gem to improve efficiency and access new geologies.

Although total assets have decreased by 13%, Debmarine Namibia’s asset base remains robust at N$13 billion, with around N$4 billion in equity.

Furthermore the company said it has been reducing its debt, particularly with the repayment of the Benguela Gem loan.

Looking ahead, Mertens remains optimistic, stating that despite the current financial turbulence, the market fundamentals for the diamond industry remain in place.

De Beers reduced rough diamond prices by 10% to 15% at its December meeting in 2024.