In Uganda, the after-tax profits of Umeme, the national electricity distributor, fell 64% in the first half of 2020 due to the coronavirus pandemic. The company has, in fact, been faced with a combination of technical and commercial losses.
In Uganda, the national power distributor Umeme announced a 64% drop in profit after tax in the first half of 2020. It is indeed risen from 61 billion Ugandan shillings ($ 16.7 million) in the 1 st half 2019 22 billion shillings over the same period in 2020. This drop in performance was driven by the drop in electricity demand and payments induced by the coronavirus pandemic.
In fact, during the month of April, the government instituted a complete containment which led to a 29% drop in demand. To this were added 17.4% technical losses. “Our loss reduction efforts regressed significantly during the lockdown period during which we also experienced a peak in business losses,” the company said in a statement.
If the consumption of companies fell during confinement, the social measures put in place to ensure a continuous supply to households, made it possible to keep their consumption at a constant level.
With this drop in Umeme’s profits, expected income for shareholders will also be reduced for sure.
Source: Agence Ecofin