Umeme Limited has issued a profit warning after posting a net loss of USh 166.7Bn (KSh 6.1Bn) for the half year ended June 30, 2025, following the March expiry of its 20-year electricity distribution concession.
- •The end of the concession halted revenue generation, triggering sharp declines in financial performance.
- •Revenue has plunged 56% to USh 503.5Bn (KSh 18.5Bn) from USh 1,151.8Bn (KSh 42.4Bn) in H1 2024, while gross profit dropped to USh 95.4Bn (KSh 3.5Bn) from USh 409.7Bn (KSh 15.1Bn) as operating months reduced and regulatory income recovery lagged.
- •An amortisation charge of USh 134Bn (KSh 4.9Bn) was booked to revalue assets under IFRS, contributing to the loss.
Umeme’s operating costs fell to USh 99Bn (KSh 3.6Bn) from USh 146Bn (KSh 5.4Bn).
| Metric | H1 2025 | H1 2024 | YoY % |
|---|---|---|---|
| Revenue | USh 503.5Bn | USh 1,151.8Bn | −56.3% |
| Gross profit | USh 95.4Bn | USh 409.7Bn | −76.7% |
| Operating profit/(loss) | −USh 132.0Bn | USh 30.2Bn | Into Losses |
| Net profit/(loss) | −USh 166.7Bn | USh 13.0Bn | Into Losses |
| EPS | −USh 102.7 | USh 8.0 | Into Losses |
| Total assets | USh 590.3Bn | USh 1,388.7Bn | −57.5% |
| Equity | USh 68.8Bn | USh 802.6Bn | −91.4% |
| Operating cash flow | USh 87.4Bn | USh 112.1Bn | −22.0% |
| Investing cash flow | USh 407.9Bn | −USh 66.1Bn | Turnaround |
| Cash balance | USh 466.3Bn | −USh 36.8Bn | Turnaround |
Buyout Status
Umeme received USh 433.8Bn (KSh 16.0Bn) from the government as part of the buy-out amount, which drove the cash surge despite the losses. Equity collapsed as accumulated losses widened and assets were written down.
The company has declared a formal dispute with the Government of Uganda over the final buy-out amount and is preparing for arbitration after initial talks failed. Management told shareholders at the July 18 AGM that resolving this dispute remains its top priority.
Umeme also paid an interim dividend of USh 222 per share on July 31, 2025. The board said it will continue managing the business prudently during this transition while evaluating new post-concession opportunities.
