CEC ties decline in profits to projects

COPPERBELT Energy Corporation has attributed the slight decline in its profit before tax to the number of projects it is undertaking and the effects of the 2008 global economic recession.

In an interview, CEC chief executive officer Neil Croucher said the load at the company was picking up slowly after the challenges of the global recession in 2008.

CEC’s profit before interest and tax for the first six months of this year decreased by one per cent to US $11.135 million, according to the summary consolidated un-audited results for the period ended June 30, 2011.

Croucher said CEC was expected to increase its power production and sales once it fully recovered from the effects of the global economic recession.

“We are still coming out of the global recession which had affected the company. But slowly we are managing and very soon we will be back after we recover and when we complete most of the projects we are developing,” Croucher said.

He said there were a lot of mining projects being developed that would increase the load demand by mining firms once they come on stream.

Croucher said the company was incurring expenses in the numerous projects it was involved in with the mines.

“There are numerous projects that we are undertaking with the mines and they will only start consuming power once they are completed. We expect the load to pick up in the next two years,” Croucher said.

The CEC is carrying out projects at Muliashi, Luanshya Copper Mines, Konkola North mine, among others.

“And the government has allowed us to do feasibility studies to develop hydro power in Luapula River,” said Croucher.

“If we manage to do that, it means the power will feed into the national grid but because of its proximity, Luapula will also be supplied.”