In compliance with the requirements of the Securities Act, CEC Africa Investments Limited announces its unaudited results for the Half Year ended 30 June 2017. Below are extracts from the financial statements.
Financial Highlights
- The Company is committed to its responsibility to its shareholders to ensure the shareholders earn a return through dividend payment and sustained share price growth. In Nigeria where the Group has operating companies, challenging conditions in the operating environment make it difficult for the business to be profitable. The challenges include:
– Volatility and unpredictability of tariffs, caused by the failure of the regulator to adjust tariffs to account for movements in pre-agreed economic and sector indicators; thus making tariffs non-cost reflective;
– Mismatch between cost of energy increases (based on the Power Purchase Agreement foreign exchange hedge) and allowable tariffs by distribution companies, reducing gross profit for distribution companies;
– Non-payment by Government agencies of electricity bills, which severely impacted Abuja Electricity Distribution Company Plc (AEDC) due to its customer demographics;
– Lower than anticipated generation due to non-availability of gas. - Revenue compared to the same period last year is down 41% mainly due lower power generation in Nigeria which has been compounded by the depreciation of the Naira against other currencies.
- On a positive note the group’s associate, North South Power has been profitable and contributed a share of profit of K24m compared to a loss of K141m in the prior period.
- The group’s loss for the half year 2017 at K806m is significantly lower than the prior period loss of K1.2bn.
- Net Finance costs at K69m are lower than the same period last year which stood at K1.2m. This was on account of a major depreciation that occurred in the Naira in May 2016.
Dividends proposed and paid
During the period under review, the Company did not pay any dividend.
By Order of the Board
Clara K Mvula
Head, Corporate Services
Issued in Lusaka – Zambia on 7 September 2017
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First Issued on 7 September 2017
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