The Directors of Copperbelt Energy Corporation PLC (“CEC”) presents the earnings presentation for the half year ended 30 June 2016. Below is an extract from the presentation.
Financial highlights: Zambia vs Nigeria
- Nigerian Operations Revenue of USD202m compared to the Zambian revenue of USD155m.
- The higher revenue is as a result of increased tariffs at AEDC Plc.
- Zambian operations profit of USD26m. Higher profit on account of increased power trading.
- Nigerian operations loss of USD183m mainly due to:
- Exchange loss of USD107m for the KANN loans resulting from the depreciation of the Naira from N/$196.5 to N/$282.5.
- Provision for bad debts of USD52m.
- Total current liabilities for the Nigerian business includes USD259m relating to the market operator’s (MO) bill.
- Efforts to seek senior debt for capital expenditure underway.
- Sector liquidity shortfall negatively impacting on the operation’s ability to meet the full bill to the Market Operator.
- Currency mismatch between the cash-flows and UBA loan obligation remains key risk.