This archive report was first published on 24 August 2021.
On August 24, 2021, Umeme Limited, a Ugandan distributor and supplier of electricity listed at the Nairobi Securities Exchange, announced a significant increase in its half-year earnings.
The company recorded a net profit of $13.5 million (USh 48.2 billion) in H1, 2021, more than double the $6.1 million (USh 21.8 billion) it earned in H1, 2020.
Umeme Limited's revenue from contracts with customers rose to USh 927.9 billion ($259.7 million) in H1, 2021, up from USh 848.8 billion ($237.7 million) in H1, 2020.
The company's interim unaudited financial statements show that its pre-tax profit doubled from USh 32.3 billion ($9 million) in H1, 2020 to USh 69.6 billion ($19.5 million) in H1, 2021.
Umeme Limited has been implementing an investment plan of $30 million (USh 110 billion) to improve supply reliability, reduce energy losses, and increase efficiency in operations.
The company's online new applications platform has simplified and improved the customer connections experience, with new applicants now connected within an average of 3 days.
Umeme Limited has added 31,722 customer-funded connections over the past six months, bringing the total to 40,629, and aims to clear the 87,500 connections backlog by November 2021.
The company's customer base stands at 1,530,733, with 29,733 customers under the postpaid system.
Electricity sales for the six months to 30 June 2021 increased compared to a similar period last year due to the effects of COVID-19 related lockdowns, with a recovery of Uganda's industrial sector boosting demand for power at 13% from new and existing customers.
Energy losses for the six months were 17.9%, compared to 17.5% for 2020, due to the impact of COVID-19 restrictions on Umeme Limited's ability to execute its loss reduction programme.
Umeme Limited Investment Plan ¶
Under the $30 million (USh 110 billion) investment plan, Umeme Limited is implementing various projects, including the Nakasamba power station in Entebbe, conversion of 30,000 postpaid customers to Yaka, and line refurbishments in several areas.
The company's revenue growth of 9.3% to $259.7 million (USh 928 billion) is attributed to increased electricity demand across all consumer categories following reduced restrictions after the 1st wave of COVID-19.
Gross profit for Umeme Limited increased by 28.7% in the six months to 30 June 2021 to USh 299 billion ($83.6 million) compared to USh 232 billion ($64.9 million) in 2020.
