Uganda power firm Umeme Ltd posts 19pc profit drop to Sh1.3bn

Umeme customers make payments at one of the power distributor's branches in Kampala. PHOTO | FILE |

What you need to know:

  • Umeme incurred Sh240 million (Ush6.97 billion) in foreign exchange losses during the period
  • Operating income declined by almost half to Sh133 million (Ush3.86 billion).

Ugandan power distributor Umeme Ltd posted a 19 per cent decline in net profits for the half-year to June on the back of foreign exchange losses.

During the period, the company — which is listed on the Ugandan and Kenyan bourses — realised Sh1.32 billion (Ush38.2 billion) profit after tax, down from Sh1.63 billion (Ush47.33 billion) recorded during a similar period last year.

It incurred Sh240 million (Ush6.97 billion) in foreign exchange losses during the period, while operating income declined by almost half to Sh133 million (Ush3.86 billion).

Umeme is banking on growing its customer base and a reduction in power losses to reverse this trend in the remaining part of the year.

“The company expects continued growth in new customer connections. The investment plan for the year is on track, including continued focus on the rollout of prepaid metering,” said a statement accompanying the results.

The firm announced a plan to increase credit to finance the installation of prepaid meters from $35 million drawn in the period under review to $60 million during the second half of the year.

The board of directors approved a Sh527.58 million (Ush15.3 billion) interim dividend.