Puma Energy Zambia Plc Reports Decreased Profit of ZMW14.24 Million in HY2023 Interim Report Due to Stock Holding Loss and Currency Volatility

Published On: October 4, 2023Company: Puma Energy Zambia Plc (PUMA.zm)
What factors contributed to the decrease in profits for Puma Energy Zambia Plc in its HY2023 Interim Report?
The main factors that contributed to the decrease were a stock holding loss due to post regulatory price adjustments, the higher cost of imports, and losses from high currency volatility which impacted importation prices.

Summary of Puma Energy Zambia Plc HY2023 Interim Report

  • The company recorded a profit after tax of ZMW14.24 million for the half-year ended 30 June 2023, a decrease from ZMW141.14 million in the previous financial period.
  • There was a 3% increase in volumes as compared to the previous year.
  • Profit before finance costs, taxation, and exchange gains was ZMW56.53 million, down from ZMW256.26 million reported in the previous year; pre-tax profit also decreased from ZMW205.47 million to ZMW5.95 million.
  • Key drivers for lower profit include stock holding loss of product due to post regulatory price adjustments, higher import costs, and losses stemming from high currency volatility affecting import prices.
  • ZMW34.91 million was invested in capital projects, primarily in Retail Network, Head Office Renovations, and Lusaka Terminal during the reporting period.
  • The local currency, the Kwacha, depreciated against the United States Dollar, closing at ZMW17.48 in June 2023 from ZMW17.13 in June 2022.
  • Despite the decreasing profit, the company remains positive with new business prospects and strategic initiatives. It believes the strong investment program will add benefits to the business, and expects sales volumes to grow by the end of this financial year.

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About Puma Energy Zambia Plc (PUMA.zm)

Puma Energy Zambia Plc is an integrated energy supply group listed on the Lusaka Securities Exchange. It specializes in delivering sustainable, quality products and services to the local market, primarily domestic fuel and fuel-related services. The company was founded in 1997 and is headquartered in Lusaka, Zambia.

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