CEC | Summary Consolidated Unaudited results for the period ended 30 June 2015

In compliance with the requirements of the Securities Act and the Listing Rules of the Lusaka Stock Exchange, Copperbelt Energy Corporation Plc announces the unaudited results for the period ended 30th June, 2015 (Half-year Results).

Financial highlights

• The Group continues to make positive strides in most respects as it focuses on stabilizing the operations in Nigeria and growing / diversifying its Zambian operations.
• The Revenue for the Group has increased by 19% in Zambian Kwacha compared to the half year 2014 on account of improved billing efficiency, power tariff increase at the Abuja Electricity Distribution Company (AEDC) and depreciating Kwacha on the Zambian operation.
• The Group has recorded a net loss of ZMW556m compared to a loss of ZMW354m for the same period last year. The higher than previous period Group loss is on account of:
  • the effect of the change in bad debt provision in the Group CEC Unaudited Half-year Results
  • the effect of the depreciation of the Nigerian Naira to the US Dollar, which is the reporting currency for the Nigerian subsidiaries
  • the depreciation of the Naira against the US Dollar has increased interest costs through a resultant exchange loss of ZMW190m in finance costs
• The business plan of AEDC provided for a five-year turnaround period. Improvements have been slower than expected due to regulatory uncertainty occasioned by the presidential elections and subsequent change of administration in Nigeria. The new government seems largely supportive of the privatized power sector and there is reason to expect a stable policy environment over the next 4 years of the turnaround business plan.
• Despite the Group having posted a loss for the period, Copperbelt Energy Corporation Plc (CEC), the Zambian parent Company, remains profitable.

Dividends proposed and paid

A dividend of 5.53 Ngwee (K0.0553) per share was declared and paid in March 2015.

By Order of the Board
Julia C Z Chaila (Mrs.)
Company Secretary

Related download

• CEC 2015 interim results.pdf