AUGUST 22, 2012
KAMPALA, Uganda - UMEME has today released its financial performance for the fiscal year 2011 to the media at a breakfast held at the Kampala Sheraton Hotel.
The report profiles Umeme's financial performance for the year 2011 and shows a 32% growth in Earnings before Interest Taxation Depreciation & Amortization (EBITDA) of UGX 102,295,000,000/=, up from UGX 77,395,000,000/= in 2010.
The report outlines Umeme's financial health and also highlights major achievements throughout the year. Some of these are:
While presenting the report to the media, Chief Financial Officer Umeme Selestino Babungi said "We are delighted by the good financial performance in 2011 despite the challenges faced in the year, especially limited power generation that led to load shedding our consumers and the tough economic environment. This also was a year that demonstrated we have put in place the critical ingredients required for us to be a viable business...'
- Cash generated from operations UGX 60 billion, an increase of 38% from 2010.
- Debt finance inflow from International Finance Corporation of UGX 23 billion.
- Capital Expenditure of UGX 78 billion, up from UGX 51 billion spent in 2010.
- Reduction in energy losses to 27.3% from 30% recorded in 2010.
- Customer growth by 13%. Total connections in the period were52,349 and total customers as at end of period were 457,808.
- Increase in revenue collections to 99% compared to 95% achieved in 2010.
The CFO reaffirmed Umeme's commitment to focus on a variety of technology based solutions that '...will enhance our customers' service experience and deliver on our Regulatory targets..."
Despite precarious operating conditions, Umeme outperformed in all segments of their business and completed the 7 year regulatory review period well ahead of time.
Umeme's investment in the Distribution network has exceeded UGX 324,350,000,000/= (three hundred and twenty four billion, three hundred and fifty million) and they have connected 250,000 customers against a target of 60,000 set in 2005.
In his remarks the Managing Director of Umeme Charles Chapman called upon the media to join the campaign against Power thefts that are causing unacceptable levels of commercial losses '...We need the support of the media to cultivate a culture of responsibility in our communities, we need to get our customers working with us to ensure that we all pay our fair share of electricity and importantly keep our families safe from illegal connections that are taking the lives of too many people...'
Over the past few years Umeme has invested in Technological solutions like Prepaid metering, SCADA (a real time remote monitoring of the distribution network system that has improved maintenance and management of the distribution network), Automated Meter Reading, alternative bill payment channels (Umeme TouchPay) and more accessible service centres.
Mr. Chapman commended the Umeme staff on their commitment to the job and their professionalism during the difficult times in 2011.
In response to the high incidence of corruption in service delivery by Imposters, some staff members collaborating for power theft, Umeme has partnered with Transparency International to build and manage an integrity call centre. This call centre is a place the general public can call to report cases of corruption, theft of power or Umeme installations or abuse of office.
The toll free call centre number is 0312 360671 and can also be reached by email on email@example.com.
Umeme is Uganda's largest electricity distribution company supplying 99% of Uganda's power. Umeme has substantially developed the network since its establishment in 2005 following the restructuring of the electricity sector by the Government of Uganda. Umeme has increased energy sales from under 1,000GWh to over 1,700GWh and its customer base has grown from 250,000 in 2005 to almost 460,000 by the end of 2011.
Umeme earns a contracted US$ return on capital deployed on network investment, fixed for the life of the concession (2025). The sector is regulated under strict and transparent legislation managed by the Electricity Regulatory Authority whose mandate includes the setting of key performance targets for Umeme measured over a specified period. Targets for the next regulatory period were agreed in 2012.
Umeme is 100% owned by Actis, the pan-emerging markets private equity firm with US$5 billion funds under management.
For more information on this press release please contact Charlotte Kemigyisha on firstname.lastname@example.org.