The Uganda Electricity Transmission Company (UETCL) has been ranked as the most profitable public company with a profit of UGX 82.3 billion earned through energy sales in the Financial Year (FY) ending June, 2024. UETCL was closely followed by Uganda Electricity Generation Company (UEGCL) at 54.2 billion and Uganda Civil Aviation Authority at UGX 32 billion.
The three top public corporations raked in a combined UGX 168 billion in annual profits outperforming other 17 sister corporations and state enterprises, according to details from the latest Auditor General’s report.
However, UETCL’s profitability decreased by 13 percent from UGX 94 billion in FY 2022/23 to UGX.82.25Bn in FY 2023/24, majorly due to foreign exchange differences.
UEGCL’s profitability improved by 60% due to increased revenue because of taking over Karuma and Nalubale-Kiira power plants. However, the Auditor General noted that the Return on Assets is only 1.25%, indicating a sub-optimal utilisation of the company’s assets in generating income.
UEGCL’s debt ratio was 88.7% implying that most of its assets are financed by on-lent loans for Karuma and Isimba power plants, showing an 18% increase in interest payments which the Auditor warned may indicate potential challenges in meeting future interest payments. It is likely UEGCL’s profit will be absorbed by its loan obligations.
The financial analysis of the Aviation Authority for FY 2023/24 indicates a decline in financial performance, resulting in a reduction of the net surplus from UGX 39 billion to UGX 32 billion. This reduction is primarily attributed to a sharp increase in operating expenses from UGX.248.5 billion to UGX.295.6 billion.
The Aviation Authority also lost out on revenue for failure to enforce the Chief Government Valuer-determined rental rates and secure formal tenancy agreements with tenants for the new cargo terminal building resulting in a USD 1.4 million revenue shortfall.
The Aviation’s lack of formal agreements with government entities occupying airport space has resulted in an uncollected revenue shortfall of UGX 2.7 billion.
Mandela National Stadium reported a sharp rise in profit from UGX 2.3 billion to 18.6 billion largely due to the receiving of additional government support for renovation and upgrade to complete phase one of UGX 17.6 billion in form of a subvention from the Ministry of Education.
The National Enterprise Corporation (NEC) Luwero industries reported a rise in profit from UGX 8 billion to UGX 10.6 billion. No explanation was given by NEC for the rise. Others include; The NEC Construction Works and Engineering Limited at UGX 5.4 billion and NEC AGRO SMC Limited at UGX 4.3 billion.
Profits for National Housing and Construction Company Limited reduced by 90.5% from UGX 34.5 billion reported in the previous year to UGX 3.2 billion. The Company has improved its business model from over reliance on long term construction and sale of residential houses to a blended business model of more sustainable business units in the rental market segment along with construction and consultancy services that match short term reporting requirements and performance outlook.
On the other hand, Uganda Printing and Publishing Corporation, which had made a loss of UGX 3.07 billion in the previous year, posted profits of UGX1.04 billion in the year under review.
In addition, a number of state enterprises and corporations reported increased losses compared to last year’s figures. These include; Kilembe Mines Limited (UGX 21 billion), Uganda Electricity Distribution Company (UGX 10.9 billion), Uganda Railways Corporation (UGX 36 billion), and NEC Farm Katonga Limited (UGX 1.9 billion).
In contrast, the Uganda National Oil Company and Uganda National Airlines Company Limited (UGX 238 billion) (UGX 3.7 billion), although still incurring losses, managed to reduce their deficits by 78.4% and 26.5% respectively, implying improved revenue generation and effective cost management.