Copperbelt Energy generates a 9pct operating profits last year
Copperbelt Energy Corporation, Zambia’s electricity provider to the mines generated more than 9% operating profits last year as demand for power increases in the Southern African nation.
According to company secretary Ms Julia Chaila, Copperbelt Energy Corporation and one the top listed companies realized USD 167,294 154,169 in revenue for the financial year ending December 31 following increased demand for power from the mines and other customers.
The increase in revenue is attributed to an 8 percent increase in power sales volume to the mines and tariff indexation of 0.75%. Cost of sales, mainly comprising payments to state utility known as ZESCO under the Bulk Supply Agreement, increased by 9% to USD 121.4 million compared to USD 111.8 million a year earlier.
The increase is chiefly on account of an increase in the sales volume and annual tariff indexation. Net cash inflows on operating activities were USD 36.4 million. Net cash outflows from investing activities rose to USD 13,126 compared to USD 8,341 a year earlier. Net cash outflows for the company compared to inflows from or on financing activities increased to USD 17.1 million last year compared to USD 17 million previously.
Results from Operating activities were USD 16 million while income tax expenses dropped to USD 5 million from the USD 6 million paid a year earlier. Net of income tax USD 2.4 million while the total comprehensive income for the year was USD 13 million.
Earnings per share for weighted basis and diluted earnings per share were 1.27 US cents from 1.19 US cents. The company’s total non-current assets rose to USD 241.2 million from USD 238.2 million a year earlier. Total current assets dropped marginally to US$36.3 million from 36.5 million. Total assets were USD 278 million in 2010 compared to USD 275 million a year before. Total equity was USD 161 million compared to USD 158.2 million in 2009.
Total non current liabilities decreased to USD 73.1 million from USD 81.5 million previously while total current liabilities rose to USD 43.5 million from the previous USD 35 million. Total Equity and Liabilities stood at USD 277.5 million compared to USD 275 million a year earlier.
It stated that turnover for the year to December 31st 2010 increased by 9% and earnings per share increased by 7% compared to the previous financial year. Operations of Chinese run Luanshya Copper Mines, which were put under care and maintenance during 2009, when the mine ceased operations after the departure of former owners, Enya Holdings, are now under new management and have resumed.
Compared to the 12 months ended December 31st 2009 the company load sales volume increasing by 8 percent to 470 MW of power in 2009 compared to 436 MW of electricity sold in 2008. On the future outlook, the company seeks to ensure continued growth and is committed to investing in projects in the Copperbelt, in other provinces of Zambia and in the region through various projects being undertaken to supply new mining projects on the Copperbelt.
The projects include the Greenfield Muliashi Project by China non ferrous Luanshya mine, the Konkola North Mine Project by KONNOCO, the Synclinorium Project by Mopani Copper Mines and the CRO Project by KCM. Upon completion, these projects are expected to require in excess of 100 MW additional capacity. Construction of a new double circuit 220 kV interconnector between Zambia and the DRC, a joint project between CEC and the Democratic Republic of Congo’s electricity utility, SNEL is ongoing.
The cost of the Zambian portion of the project is approximately USD 16.5 million. This line will facilitate the transfer of 550 MW firm power between DRC and Zambia. Feasibility studies for Kabompo Gorge Hydro Project in north western Zambia are complete while project development activities are underway.
Copperbelt Energy Corporation is 52% subsidiary of Zambian Energy Corporation Limited. The ultimate holding company is Batoka Energy Holdings Limited with 60% interest in Zambian Energy Corporation Limited. Batoka Energy Holdings Limited prepares consolidated financial statements.
CEC supplies power to the mines based on the Copperbelt and owns and operates a network comprising 884km of transmission lines, 38 substations, a system control centre and 80MW of gas turbine generators. The power supplier also wheels power through its network on behalf of state utility known as ZESCO on the Copperbelt, and operates an interconnector with the Democratic Republic of Congo.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
Source: STEELGURU
Disclaimer: Please note that the article above has been reproduced as is from its source. While CEC fully appreciates the efforts of the author in writing the above article, PLEASE NOTE that the figure quoted for CEC’s revenue for the year ended 31 December 2010 of USD 167,294 154,169 is incorrect and the correct figure is USD167,294,000.
