Umeme Limited, a Ugandan distributor and supplier of electricity and listed at the Nairobi Securities Exchange(NSE), has recorded a Net Profit of US$ 13.5 Million( USh 48.2Billion) in H1, 2021.
This is against a net profit of US$ 6.1 Million(USh 21.8Billlion) over a similar period in 2020.
Revenue from contracts with customers rose to USh 927. 9 Billion($259.7 Million) from USh 848.8Billion(US$ 237.7 Million) in H1, 2020.
The electricity distributor’s interim unaudited financial statements show that Pre-Tax Profit doubled from USh 32.3Billion(US$ 9 Million) in H1, 2020 to USh 69.6Billion($19.5 Million) in H1, 2021.
Umeme Limited has been implementing an investment plan of $ 30 Million (USh 110 Billion) related to supply reliability, growing demand, public safety, energy losses reduction and efficiency in operations.
Online New Applications platform has simplified and improved the customer connections experience.
New applicants under the self-funded program are now connected within an average of 3 days.
Over the past six months, Umeme Limited has added 31,722 customer-funded connections, bringing the total for the period to 40,629.
It aims to clear the 87,500 connections by November 2021 as the Government mobilises additional financing for the rest of the backlog.
The customer base stands at 1,530,733, of which 29,733 are under the postpaid system.
Overall, electricity sales for the six months to 30 June 2021 increased compared to a similar period last year due to the effects of COVID-19 related lockdowns.
A recovery of Uganda’s industrial sector has boosted demand for power at 13% from new and existing customers, commercial demand at 13% and domestic customers at 5%.
Energy losses for the six months were 17.9% compared to 17.5% for 2020.
The Covid-19 restrictions impacted Umeme Limited ability to execute its loss reduction programme during the period.
Umeme Limited Investment Plan
Under the US$ 30 million (USh 110 billion) investment plan, some of the projects under implementation by Umeme Limited include Nakasamba power station in Entebbe, conversion of 30,000 postpaid customers to Yaka, line refurbishments in Kamuli, Kibimba, Bubulo, Fort-Portal, Kisubi Kampala South; reconfiguration and supply stabilisation in Naalya, Najjera, Buwate, Namugongo and Ntinda belt, additional transformer zones and new connections.
Revenue growth of 9.3% to $259.7 Million(USh 928 Billion) is attributed to increased electricity demand across all consumer categories following reduced restrictions after the 1st wave of Covid-19.
Gross profit for Umeme Limited increased by 28.7% in the six months to 30 June 2021 to USh 299 Billion($ 83.6 Million) compared to USh 232 Billion($64.9 Million) of 2020.
The growth is attributed to investments in development and reliability-related projects and increased demand from existing and new customers.
Operating costs increased by 12% to USh 123 Billion( $ 34.4 Million) from USh 110 Billion($ 30.8 Million) in 2020. There was an increase in overall business activities to comply with Covid 19 directives, repairs and maintenance of the network and impairment of receivables in light of constrained economic activities.
Earnings Before Interest Tax Depreciation and Amortization (EBITDA) strengthened by 48% to USh 173.8 Billion($48.7 Million) in H1, 2021 compared to USh 121 Billion(US33.9 Million) in H1 2020.
Umeme directors do not recommend payment of an interim dividend.