CEC | Release of FY2015 abridged results
In compliance with the requirements of the Securities Act and the Listing Rules of the Lusaka Stock Exchange, Copperbelt Energy Corporation Plc announces its audited results for the year ended 31 December 2015.
Financial Highlights
- The Group made positive strides in most respects as it continues to focus on stabilizing its operations in Nigeria and growing its Zambian operations.
- Revenue for the Group has increased by 49% in Zambian Kwacha (ZMW) terms compared to the year 2014. This is mainly due to the results being translated from United States Dollars (USD) to ZMW where the depreciation of the Kwacha positively impacted on the results. In USD terms, revenue increased by 6%.
- The Group has recorded a net loss of ZMW1.902 million compared to a loss of ZMW1.009 million last year. The Group loss is attributed to high Aggregate Technical Commercial and Collection (ATC&C) losses at Abuja Electricity Distribution Plc (AED Plc) in Nigeria as well as a one-time impairment loss on Property, Plant and Equipment.
- CEC Plc entity revenues increased 33% from ZMW1,797m to ZMW2,685m and the Company’s gross profit, at ZMW746 million, increased 37% compared to prior year. The increase is attributed to the depreciation in the Kwacha. The Zambian business also increased its supplies of power to customers in the Democratic Republic of Congo (DRC), which positively impacted on the results.
- The business plan of AED Plc provides for a five-year turnaround period and, so far, management is broadly on track to meet the various performance targets. Additionally, the business improved its billing efficiency during the year, which led to a steady increase in energy billed.
Dividends proposed and paid
During the year under review, the Company paid a total sum of dividends of ZMW89.863 million (USD14million).
Performance update
Despite the headwinds that we faced in our operating environment both in Zambia and Nigeria, the overall performance for 2015 has not significantly been impacted. In Zambia, in particular, CEC Plc delivered a solid performance on the back of strong growth in international power sales. While the power shortage that begun during the year, coupled with falling commodity prices on the global market, eventually impacted the local power sales especially in the final quarter of the year, our international power sales to the DRC remained strong, enabling the Company to more than make up for the potential revenue loss that it faced…
Events subsequent to the reporting date
The Company declared a dividend, in February 2016, of 11.36 Ngwee (K0.1136) per share.
By Order of the Board
Julia C Z Chaila (Mrs.)
Company Secretary
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