Weak economic growth has affected power utility Umeme’s net profit which fell by 6 per cent according to the recently released financial results for 2016.
Umeme registered a net profit after tax of Shs100b in 2016 down from Shs106b in 2015 on account of slowed economic growth due to the high commercial lending rates and the election period.
Speaking during the release of its 2016 full year results at the Uganda Securities Exchange (USE) in Kampala last week, Mr Selestino Babungi, the Umeme chief executive officer (CEO), said there was a significant reduction in sales of electricity in the industrial subsector.
Energy losses averaged 19.0 per cent compared to 19.5 per cent in 2015. This is below the regulatory energy target of 16 per cent.
He said the company invested $93 million (about Shs334.8 billion) in the distribution network in 2016 which increased its total network investment to $500 million (about Shs1.8 trillion ) since the start of the concession.
“The $93 million invested over the period focused on network expansion and restoration, new connections and rollout of prepaid metering,” he said.The key projects implemented during the year include Moniko substation, upgrading Kampala Industrial Business Park in Namanve, new connections, network expansion.