Selestino Babungi, the Umeme Managing Director
Umeme Ltd’s profit after tax increased by 33% to Ushs. 64 billion as compared to Ushs. 48 billion in 2021, according to the Company’s unaudited interim condensed financial results for the six months period ended 30 June 2022.
The Company’s Earnings Per Share increased to Ushs. 39.6 from Ushs. 29.7 for the same period in 2021.
The statement signed off by Selestino Babungi, the Umeme Managing Director and Patrick Bitature, the Board Chairperson, also indicate that the Company’s net debt on 30th June 2022, was down 20% to Ushs. 268 billion (US$ 71 million) compared to the closing balance at 31 December 2021 of Ushs. 337 billion (US$ 95 million) following scheduled repayment of Ushs. 90 billion (US$ 24 million) on our long-term borrowings.
Revenue
The results show that electricity sales to customers increased by 3.2% to Ushs. 876.4 billion as compared to Ushs. 849.2 billion in 2021.
“Total electricity sales increased by 9% to 1,875 GWh amidst a reduction in energy losses to 17.1% as compared to 17.9% for 2021, as power consumption in the domestic, commercial, medium, and large industrial consumer segments posted double-digit growth,” the statement reads in part.
It adds: “However, growth in electricity consumption in the extra-large industrial category was flat at 0.7%. Despite inflationary pressures in the economy, Operating Costs reduced by 6.5% to Ushs. 115 billion as compared to Ushs. 123 billion in 2021 supported by reorganization of the business during the period and efficiency gains from our continued investments in technology.”
The results show that operating profit increased by 21% to Ushs. 100 billion as compared to Ushs. 82 billion in 2021 driven by performance on gross profit and operating costs.
No Dividends
The Company says in line with the previous interim periods, the its strategy is to pay scheduled term debt and to fund ongoing capital investments in the distribution system for efficiencies and improvement in the customer experience.
“As a result, the Directors do not recommend the payment of an interim dividend,” the statement says.
SAFETY
Umeme says it recorded six (6) fatalities on the distribution network arising from network interference, power theft and illegal operations by unauthorized people.
“We appeal to the public to report unsafe networks, power thefts, vandalism or unauthorized network operations through our multiple service channels,” the statement reads, adding: “Umeme continues to inform the public on the responsible use of electricity and the risks associated with network interference through a wide range of communication channels and engagements.”
