KAMPALA (Reuters) – Uganda’s only power distributor Umeme Limited said on Tuesday its 2020’s pretax profit plunged 69% as electricity sales plummeted due to anti-coronavirus measures including a nationwide lockdown.
The utility, which is listed on the Uganda and Kenya stock exchanges, holds a monopoly 20-year power distribution concession that is due to expire in 2025.
Results published on Tuesday showed the firm’s pre-tax profit fell 69% to 63 billion shillings ($17.26 million), from the previous year.
“The results for the year were impacted by the COVID-19 global pandemic that posed a challenging operating environment,” the firm said.
Uganda implemented one of Africa’s most sweeping anti-coronavirus lockdowns that included a shutdown of all businesses but the most essential, the closure of schools and bans on movement of both private and public vehicles.
Most of those measures have since been lifted although some, such as a night curfew and bar closures remain.
Sales of electricity to some categories of consumers like medium and large industries declined in the year by up to 13% from the previous year.
The firm is in negotiations with the government to secure an extension of its concession.
Umeme said securing the extension was essential for it to deploy long term investments needed to expand the country’s power distribution network and boost the quality of supply.
($1 = 3,650.0000 Ugandan shillings)
