By Silvia Nyambura
Electricity Distribution company Umeme Limited, registered its first profit dip since coming to the Ugandan stock market in 2012. Its net profit reduced to Ushs 70.49 billion from Ushs 83.67 billion in 2013 as foreign exchange losses reduced profitability.
Energy losses were brought further down to 21.3 % compared to the 24.3 % in 2013, against a 2014 target of 20.5 %. The company achieved a revenue collection of 99.1% which supersedes the 97.5 % goal set by the regulators.
Earnings per share reduced by 15.74 % to Ushs 43.41 showing the profit after tax dip recorded in 2014 while the Net Asset Value per share rose to Ushs 193.19. The Board of Directors recommend a final dividend of Ushs 19.5 for the full year 2014 from Ushs 16.8 paid for the full year ended 2013. The proposed dividend which is subject to shareholders’ approval at the company Annual General Meeting, will be paid on or about 30th June 2015 to members on the register as at 15th June 2015
The company’s financial accounts for the year ended December 2014 revealed a healthy performance with high efficiency as cost of sales fell by 2.47% while operating costs which include administration and repair and maintenance increased marginally by 1.83 per cent.
UMEME continues to be actively traded at the Ugandan bourse. So far this year, the counter has registered trades in 95.7 % of the 69 trading sessions, closely followed by Stanbic Bank Uganda counter with 91.3 per cent. This shows the high investor appetite for the counter and its excellent market liquidity.
