Uganda’s biggest power distributor UMEME Limited has announced its half year financial statements for the six months ended 30th June 2020 indicating a reduction in gross profit by 22 percent to UGX232 billion from UGX 296 billion in the same period in 2019. This, according to the utility firm, was due to the negative effects of COVID-19 that resulted into reduced electricity demand, energy losses and regulatory income recoveries.
Profit after Tax also reduced by 64% to UGX22 billion from UGX61 billion in the same period in 2019.
On the other hand, total assets as of 30 June 2020 increased to UGX2.64 trillion from UGX2.54 trillion in 2019. Shareholder Equity as well increased by 5%, from UGX834 billion at 31 December 2019 to UGX873 billion at 30 June 2020.
Furthermore, revenue which includes revenues for electricity sales and revenues from completed ECP connections increased by 4% to UGX 849 billion for the period compared to UGX 816 billion in the same period in 2019.
During the same period, Electricity purchases also increased by 12% to UGX544 billion from UGX487 billion compared to 2019 driven majorly by 12% increase in Bulk Supply Tariff. ECP costs relating to completed connections of UGX52 billion was equally recognized during the period.
However, due to the pandemic, electricity demand reduced to as low as 29% in April 2020 during the lockdown period and for the six months to 30th June 2020, electricity sales reduced overall by 2% to 1,538 GWh down from 1,563 GWh for the same period in 2019. The impact on revenue due to reduction in sales volume is equivalent to UGX13 billion.
On a good note, Customers connected to the electricity grid increased by 4% to 1.52 million, through connection of 54,779 customers in the period, financed by the Government under the Electricity Connections Policy (ECP).
Airtel Africa and SpaceX Announce Strategic Partnership to Launch Starlink Direct to Cell Connectivity Across AfricaBy June 30, 2020, 99,779 customers were converted to prepayment metering, with the balance of 94,779 to be converted by the end of the year. Over 95 percent customers are on prepaid metering, contributing 27% of the company revenues from electricity sales
Capital Investments
As of 30th June 2020, UMEME had invested UGX78 billion (US$ 21 million) compared to UGX29 billion (US$ 7.8 million) in the same period in 2019. UMEME says its capital investment program, of US$ 83 million is focused on enabling growth in demand, improving quality of supply, energy losses reduction, digitization and completion of the roll out of prepaid metering. Projects worth US$ 74.5 million are already committed and under implementation.
UMEME has also revealed they will not be paying interim dividend during this time of the pandemic.
“However, there are uncertainties related to COVID-19, the company continues to focus on safety of staff, improving the operational performance, managing liquidity and resolving the regulatory challenges facing the Company. As a consequence, the Directors do not recommend payment of an interim Dividend until such a time when the operating environment has improved significantly,’’- UMEME announced.
“I take this opportunity to thank our Staff and Contractors who continue to show great flexibility in adapting to changing situation and remain committed to ensuring reliable and safe supply of electricity for Uganda under the most difficult of circumstances during and since lockdown. The noble service you are providing to Uganda is appreciated. I would also like to thank our customers and stakeholders for the support of the UMEME business operations,” UMEME Chairman Board of Directors, Patrick Bitature noted.
