We have extracted the financial summary from the abridged report of Umeme Limited listed on the Nairobi Securities Exchange under the share code UMME.ke. Umeme is an energy utility company focusing on energy production, distribution and services in Uganda and Africa’s sub regions.
The following is an excerpt from the abridged report;
As a result of our investments strategy and operational performance, we registered growth in financial performance for the year ended 31 December 2018.
Whereas electricity sales increased by 13% to UShs 1,601 billion in the year 2018, net revenues (after adjustments) increased by 0.8% to 1,493 billion in 2018 compared to 2017. The growth in electricity sales was driven by increased demand and tariff applicable during the year.
The operating costs of the business increased by 13% to UShs 226 billion in 2018, compared to UShs 199 billion in 2017, on account of increased business activities and general inflation adjustments. Due to the prolonged rainy season in the year, we increased the spend on network repairs and maintenance to ensure public safety and supply reliability.
EBITDA grew by 9% to UShs 354 billion in 2018 compared to 2017 (adjusted for the 2017 regulatory write downs) Profit after Tax increased to UShs 133 billion from UShs. 36 billion of 2017.
Total assets as of 31 December 2018 were UShs 2,464 billion compared to UShs 2,349 billion in 2017. Shareholder Equity increased from UShs 618 billion in 2017 to UShs 722 billion in 2018. The increase is attributed to profits for the year net of dividends paid during the period.
Net cash flows generated from operating activities increased by 31% to UShs 395 billion. The funds were used to fund investments in the network and financing commitments of the business.
Subject to the approval of the shareholders, the directors recommend to members that a final dividend of Ushs 28.2 per ordinary share be paid for the year ended 31 December 2018 (2017: Ushs 7.6), subject to deduction of withholding tax where applicable, to shareholders registered in the books of the Company at close of business 25 June 2019. An interim dividend for the year of Ushs 12.7 per share was paid in January 2019 (2017: Ushs 0) The total dividend for the year will be Ushs. 40.9 per share. If approved, the outstanding dividend will be paid on or about 15 July 2019.
Investment in infrastructure i.e. roads, rail, energy, airports etc, is a top priority for the Government, in the future development of Uganda. There is a sense of urgency in accelerating investments across the electricity value chain, and particularly in the distribution sub sector to improve reliability, service, grid connections and uptake of new generation capacity.
Umeme is positioned and aligned to support Government in achieving its development agenda. I take this opportunity to thank the Government, our customers, shareholders and stakeholders for the support and for giving Umeme the opportunity to contribute towards economic growth of Uganda.
To our staff, who are serving our customers and stakeholders 24/7, we thank and appreciate your work, and may you continue to do better.