UMEME LIMITED UMEME LIMITED
UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2023
Umeme Limited is pleased to present its unaudited interim condensed financial results for the six months period ended 30 June 2023
OPERATIONAL REVIEW | FINANCIAL REVIEW | |||
The economy continues to recover from the Covid-19 effects with growth projected at 5.3% in the 2023/24 fiscal year. The increased economic activity and new connections to the grid have translated into an 8.3% increase in electricity demand for the six months to 30 June 2023 compared to the same period in 2022.
Electricity sales to domestic households, commercial, medium industrial and large industrial customers, increased by 7%, 11%, 10% and 11% respectively.
In addition, the reduction of connection charges and the introduction of Uganda Development Bank's hybrid loan financing scheme has led to an increase in new customer applications and connections.
During the period an additional 72,411 customers were connected to the grid, compared to 56,547 in 2022 representing 28% growth, and increasing the customer base to 1.8 million.
The distribution efficiency for the period increased to 83%, compared to 81% achieved in 2022 on account of reduction in distribution losses to 16.7% from 17.1% for the same period in 2022 and a revenue collection rate of 98.9%.
During the period, we invested Ushs 41.9 billion in the distribution network for projects approved by the regulator aimed at improving customer experience. The projects are related to improving quality of electricity supply to our customers, enabling growth in demand, reduction in energy losses, network reconfiguration and digitization and continued roll out of prepaid metering.
Some of the projects being implemented include:
- Dedicated lines to improve supply reliability to Referral Hospitals
- Substations in Matugga, Hoima, Jinja, Kisugu, Mbarara and Mbale
- UETCL integration and evacuation lines in Kasana, Luzira, Hoima
- Various transformer injections across the country
- New prepaid connections and prepayment retrofits
- Geospatial Network Information System
- Reliability improvement projects across the country
From a safety perspective, regrettably, we recorded seven fatalities on the distribution network arising from network interference and illegal operations by unauthorized people. We continue to implement mass sensitisation and public awareness initiatives focused on responsible use and associated risks of electricity. We appeal to the public to report unsafe network conditions, power theft, vandalism, or unauthorized network operations through any of our multiple service channels.
Performance comparisons are stated on a year-on-year basis comparing the six (6) months to 30th June 2023 with the similar period to 30thJune 2022.
Revenues: Revenues increased by 19.9 % to Ushs 1,076 billion compared to Ushs 897 billion in 2022. The growth in revenues is attributable to an 8.3% growth in electricity sales, underlying pricing and provision of construction services.
Operating Costs: Reduced slightly by 2.6% to Ushs 112 billion compared to Ushs 115 billion in 2022. The reduction is attributed to operating efficiencies, technology uptake and optimised supply chains. The reduction in global and country inflation contained cost escalations during the period.
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA): Increased by 49.7% to Ushs 244 billion due to the 28% increase in gross profit and 2.6% reduction in operating costs.
Amortization and Profit After Tax: As the natural term of the concession is coming to its end in March 2025, the International Financial Reporting Standards (IFRS) require alignment of the amortization to the shorter of the remaining contract duration or underlying useful
life of the assets in generation of economic benefits to the Company. Consequently, the amortization charge for the period increased to Ushs 210 billion compared to Ushs 79 billion of 2022.
The resultant profit for the period reduced to Ushs 13.2 billion compared to Ushs 64.4 billion of 2022.
Cashflows: Net operating cashflow increased by 18% to Ushs 221 billion supported by cash collections, operating profits, optimized working capital and financing costs during the period. We invested Ushs 41.9 billion (US$ 11 million) in the distribution network. The capital investment programme prioritized projects relating to strengthening the distribution network and improving power reliability to our customers.
Debt: Term loans as of 30th June 2023 reduced by 72% to Ushs 74 billion (US$ 20.4 million) from Ushs 268 billion (US$ 71.2 million) at 30th June 2022 following the scheduled repayment of the term loans over the period. The final scheduled repayment of term loans is in December 2023.
Dividends: Based on the performance during the period, the directors recommend an interim dividend of Ushs 24.0 per share payable on or about 29th February 2024. The book closure date for entitlement to the dividend shall be 9th February 2024.
Page | 1/2 | Unaudited Interim Condensed Financial Statements |
For The Six Months Ended 30 June 2023 | ||
INTERIM CONDENSED STATEMENT OF PROFIT OR LOSS
UNAUDITED 6 MONTHS | UNAUDITED 6 MONTHS | |
ENDED 30 JUNE 2023 | ENDED 30 JUNE 2022 | |
(Ushs million) | (Ushs million) | |
Revenue from contracts with | ||
customers | 1,075,690 | 896,999 |
Cost of sales | (719,797) | (618,571) |
Gross Profit | 355,893 | 278,428 |
Repair and maintenance | ||
expenses | (10,882) | (16,343) |
Administration expenses | (100,986) | (98,766) |
Foreign exchange (loss)/gain | (495) | 15,612 |
Decrease in expected credit | ||
losses | - | (475) |
Operating Profit Before | ||
Amortisation, Impairment, | ||
Interest And Tax | 243,530 | 178,456 |
Amortisation and impairment of | ||
intangible assets | (210,197) | (78,518) |
Operating Profit | 33,333 | 99,938 |
Finance income | 8,953 | 10,467 |
Finance costs | (25,619) | (17,626) |
Profit Before Tax | 16,667 | 92,779 |
Income tax charge | (3,477) | (28,403) |
Profit for the period | 13,190 | 64,376 |
Basic and diluted earnings per | Ushs | Ushs |
share | 8.1 | 39.6 |
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
UNAUDITED 6 MONTHS | UNAUDITED 6 MONTHS | |
ENDED 30 JUNE 2023 | ENDED 30 JUNE 2022 | |
(Ushs million) | (Ushs million) | |
Profit for the period | 13,190 | 64,376 |
Other comprehensive income | ||
that may be reclassified to profit | ||
or loss in subsequent periods | ||
(net of tax): | ||
Exchange differences on | ||
translation from functional | ||
currency | (15,887) | 71,755 |
Total comprehensive (loss)/ | ||
income for the period, net of tax | (2,697) | 136,131 |
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
UNAUDITED | AUDITED | |
30 JUNE 2023 | 31 DECEMBER 2022 | |
(Ushs million) | (Ushs million) | |
ASSETS | ||
Non-current assets | ||
Intangible assets | 679,150 | 771,996 |
Other financial asset: Buy out | ||
amount | 921,437 | 1,008,916 |
Concession financial asset | 336,569 | 340,121 |
1,937,156 | 2,121,033 | |
Current assets | ||
Inventories | 76,527 | 66,157 |
Contract assets | 40,459 | 42,210 |
Trade and other receivables | 283,837 | 279,344 |
Prepayments | 31,455 | 16,224 |
Bank balances | 42,347 | 46,098 |
474,625 | 450,033 | |
Total Assets | 2,411,781 | 2,571,066 |
Equity And Liabilities | ||
Equity | ||
Issued capital | 27,748 | 27,748 |
Share premium | 70,292 | 70,292 |
Retained earnings | 611,135 | 701,711 |
Translation reserve | 194,410 | 210,297 |
903,585 | 1,010,048 | |
Non-current liabilities | ||
Concession financial obligation | 336,569 | 340,121 |
Deferred tax liability | 201,416 | 239,450 |
537,985 | 579,571 | |
Current liabilities | ||
Borrowings: current portion | 74,286 | 176,631 |
Customer security deposits | 11 | 11 |
Contract liabilities | 106,250 | 91,788 |
Accrued expenses | 12,834 | 17,165 |
Provisions | 870 | 881 |
Trade and other payables | 690,857 | 532,160 |
Current Income tax payable | 41,460 | 34,950 |
Bank overdrafts | 43,643 | 127,861 |
970,211 | 981,447 | |
Total equity and liabilities | 2,411,781 | 2,571,066 |
INTERIM CONDENSED SUMMARY STATEMENT OF CASH FLOWS
UNAUDITED 6 MONTHS | UNAUDITED 6 MONTHS | |
ENDED 30 JUNE 2023 | ENDED 30 JUNE 2022 | |
(Ushs million) | (Ushs million) | |
Net cash flows from operating | ||
activities | 221,275 | 187,439 |
Investing activities | ||
Purchase of intangible assets | (41,862) | (55,903) |
Net cash flows used in investing | ||
activities | (41,862) | (55,903) |
Financing activities | ||
Repayment of principal on term | ||
loans | (101,547) | (90,384) |
Net cash flows used in financing | ||
activities | (101,547) | (90,384) |
Net increase in cash and cash | ||
equivalents | 77,866 | 41,152 |
Cash and cash equivalents at 1 | ||
January | (81,774) | (44,885) |
Translation differences | 2,601 | (11,652) |
Cash and cash equivalents at | ||
30 June | (1,307) | (15,385) |
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY
ISSUED | SHARE | RETAINED | TRANSLATION | TOTAL | |
CAPITAL | PREMIUM | EARNINGS | RESERVE | EQUITY | |
(Ushs million) | (Ushs million) | (Ushs million) | (Ushs million) | (Ushs million) | |
At 1 January 2022 | 27,748 | 70,292 | 641,310 | 153,804 | 893,154 |
Profit for the | |||||
period | - | - | 64,376 | - | 64,376 |
Other | |||||
comprehensive | |||||
income, net of tax | - | - | - | 71,755 | 71,755 |
Total other | |||||
comprehensive - | |||||
income, net of tax | - | - | 64,376 | 71,755 | 136,131 |
Dividend declared | - | - | (87,814) | - | (87,814) |
At 30 June 2022 | |||||
- unaudited | 27,748 | 70,292 | 617,872 | 225,559 | 941,471 |
At 1 January 2023 | 27,748 | 70,292 | 701,711 | 210,297 | 1,010,048 |
Profit for the | |||||
period | - | - | 13,190 | - | 13,190 |
Other | |||||
comprehensive | |||||
loss, net of tax | - | - | - | (15,887) | (15,887) |
Total other | |||||
comprehensive | |||||
income/(loss), net | |||||
of tax | - | - | 13,190 | (15,887) | (2,697) |
Dividend declared | - | - | (103,766) | - | (103,766) |
At 30 June 2023 | |||||
- unaudited | 27,748 | 70,292 | 611,135 | 194,410 | 903,585 |
REVIEW AND APPROVAL
The unaudited interim condensed financial statements for the period ended 30th June 2023 were reviewed by Ernst & Young, Certified Public Accountants of Uganda. The financial statements were approved by the Board of Directors on 18th August 2023, and were signed on its behalf by:
Chairman | Managing Director | ||
Patrick Bitature | Selestino Babungi | ||
Page | 2/2 | Unaudited Interim Condensed Financial Statements | |
For The Six Months Ended 30 June 2023 |
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Umeme Ltd. published this content on 21 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2023 06:56:01 UTC.
