Release of FY2014 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 the audited results for the year ended 31 December 2014.

Financial Highlights

• The Group continues to make positive strides in most respects as it continues to focus on stabilizing the operations in Nigeria and growing its Zambian operations.
• The Revenue for the Group has increased by 110% in Zambian Kwacha compared to the year 2013. This is mainly due to inclusion of full year results for the Abuja Electricity Distribution Company (AEDC) rather than two months results in the prior year, following the acquisition of the business on 1 November 2013. Further as the results have been translated from United States Dollars to Zambian Kwacha, the decline in value of the kwacha also impacted on the results.
• The Group has recorded a net loss ZMW1,009m compared to a profit of ZMW470m last year. The Group loss is attributed to high Aggregate Technical Commercial and Collection (ATC&C) losses at AEDC in Nigeria. 2013 results were also boosted by the gain on bargain purchase on AEDC of ZMW716m.
• The business plan of AEDC provided for a five-year turnaround period and, so far, management is on track to meet the various performance targets, including reduction of ATC&C losses. Additionally, the business improved its billing efficiency during the year, which led to a steady increase in energy billed.

Future developments

The Group is seeking to consolidate its investments in Zambia and Nigeria, and will continue to develop other projects in Namibia, Sierra Leone and Zambia, including the completion of feasibility studies for potential hydro projects on the Luapula River.

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

Related link

• CEC FY2014 abridged results