Umeme Limited, Uganda’s main electricity distribution company, says it expects to post a net profit decline of up to 60% for the year ending 31 December 2020.
In 2019, the company recorded a net profit of Ushs 139 billion ($37.88 million).
It attributes the expected decline to the effects of COVID-19, regulatory lags and a suspension of the state’s free connections policy.
“The reduction in profitability is attributed to the effects of the Covid-19 pandemic, regulatory lag, and suspension of the Government’s free connections policy.”
The Company’s operations include operating and maintaining an electricity network, meter reading, billing, revenue collection and installing new connections in Uganda.
Umeme Limited is listed on both the Uganda Securities Exchange (USE) and the Nairobi Securities Exchange (NSE).
The UMME stock closed on Monday at Ksh 6.90 per share on the NSE, recording a 4.23% gain over its previous closing price of Ksh 6.62.
“Further details of the company’s annual financial performance will be disclosed in the audited financial statements to be published and circulated to shareholders,” it added.