Uganda power firm Umeme half-year pre-tax profit plunges 82%

Uganda power distributor Umeme Limited (UMEME.UG)’s pre-tax profit for the first six months of this year plunged 82%, hurt by rising amortisation costs, the company said on Monday.

Pre-tax profit fell to 16.7 billion Ugandan shillings ($4.5 million) in the first half of this year, down from 92.8 billion shillings in the same period in 2022.

Its amortisation costs nearly tripled because of the looming end of its operating licence, which expires in March 2025.

Umeme has a 20-year licence to operate as the sole distributor of power in the East African country, but the government of President Yoweri Museveni has said it intends to take over power distribution in an effort to lower consumer tariffs.

The government’s decision not to renew Umeme’s licence beyond March 2025 means it will cease operating unless it branches out into other commercial activity.

($1 = 3,730.0000 Ugandan shillings)

Source: Reuters