Umeme Ltd has recorded Shs99.7bn net profit in 2016, down from Shs105.8bn recorded in 2015. This represents a decline of 5.8%.
This is contained in the company’s financial results for the year ended December 31, 2016 released on Monday.
The directors have recommended a final dividend of Shs7.8 per share. However, directors had recommended an interim dividend of Shs11.0 per share which was approved and paid at the end of December 2016.
This implies that the total dividend for the year ended December 2016 will be Shs18.8 per share, down from Shs24.4 per share in 2015.
The utility company attributed the decline in profit to “increased financing costs alongside flat EBITDA (Earnings before Interest Tax Depreciation and Amortization) in Uganda Shilling which grew by 5.6% to Shs261.5bn compared to 2015.
The listed company on Uganda Securities Exchange revealed that it invested Shs318bn on network expansion and restoration, new connections and rollout of prepaid metering.
During the period under review, Umeme’s energy losses averaged 19.0% compared to 19.5% achieved in 2015.
Positively, customer members increased by 19.8% to 950,814.
Additionally, revenue increased to Shs1.3bn, up from Shs1.16bn in 2015.
Pre-paid revenue as of total revenue increased to 16.3% compared to 11.6% in 2015.
Under the management of Selestino Babungi as Managing Director, Umeme says in a statement that they are “focused on acceleration of regulatory approvals for investments and reducing energy losses” in 2017.