Power distributer, Umeme Ltd recorded Shs133 billion in profit after tax in 2018, up from Shs36 billion in 2017. The company’s energy losses reduced to 16.6% in 2018 compared to 17.2% for 2017.
Whereas Umeme’s electricity sales increased by 13% to Shs1.6 trillion in the year 2018, net revenues (after adjustments) increased by 0.8% to 1.49 trillion in 2018 compared to 2017.
According to the company’s 2018 audited financial results, the growth in electricity sales was driven by increased demand and tariff applicable during the year.
Customers connected to the grid, within the Umeme footprint, increased by 14.8% to 1.3 million compared to 2017. Over the 7 year period to 2018, Umeme exceeded the regulatory customer base target by 0.3 million customers (30%).
The operating costs of the business increased by 13% to Shs226 billion in 2018, compared to Shs199 billion in 2017, on account of increased business activities and general inflation adjustments.
“Due to the pro-longed rainy season in the year, we increased the spend on network repairs and maintenance to ensure public safety and supply reliability,” Umeme said.
Umeme’s total assets as of 31 December 2018 were Shs2.46 trillion compared to Shs2.34 trillion in 2017.
Dividends
Having made abnormal profits, Umeme directors recommend to members that a final dividend of Shs28.2 per ordinary share be paid for the year ended 31 December 2018 (2017: Shs7.6), subject to deduction of withholding tax where applicable, to shareholders registered in the books of the Company at close of business 25 June 2019.
This dividend payout is subject to the approval of the shareholders at the upcoming Annual General Meeting.
It is worth noting that an interim dividend for the year of Shs12.7 per share was paid in January 2019 (2017: Ushs0).
The total dividend for the year will be Shs40.9 per share. If approved, the outstanding dividend will be paid on or about 15 July 2019.
Since the liberalization of the electricity sector in early 2000, Umeme has transformed the electricity distribution system through the investment of more than US$ 600m, thus; doubling the size of the network infrastructure, connected over 1 million customers to the grid and improved the distribution efficiency from 50% as of 2005 to 86% by 2018.
