Umeme Limited is a Ugandan electricity distribution company which is cross-listed in Uganda and Nairobi stock exchanges. The company has released its half year 2016 numbers posting an increase in topline but a drop in its bottom line numbers.
Highlights
Revenue grew by 20.3% to Ushs 658.7 billion for the six months in 2016 compared to the same period in 2015 with additional revenue attributed to investments in its network and a 3.3% increase in power sales (GWh).
Gross profit grew by 5.9% to Ushs 212.4 billion as cost of sales increased by 28.6% driven by the 3.8% increase in electricity purchases and power purchase costs. Financing costs increased by Ushs 6.6 billion as a result of increased borrowings from the long term financing facility.
Net Profit during the period dropped to Ushs 54.5 billion compared to Ushs 67.6 billion at 30 June 2015. The decline is attributed to increased financing costs and a normalized tax rate. The effective tax rate at 30 June 2016 was 32.0% compared to 9.1% in the June 2015 conformed accounts.
Net cash generation from operating activities during the period fell massively to Ushs 39.9 billion compared to Ushs 114.4 billion in the same period last year.
Energy losses during the period grew marginally to 19.2% compared to 19.1% achieved during 2015 with customer numbers increasing by 20.6% to 860,563 as of 30 June 2016 compared to 713,756 as of 30 June 2015. The additional new customer connections were driven by grid extensions funded by the World Bank.
DIVIDENDS
The Board of Directors resolved to pay an interim dividend of Ushs 11.0 per share subject to withholding tax to be paid on or about 19 December 2016 to shareholders whose names appear on the Company’s share register at close of business on 2 December 2016.
