In compliance with the requirements of the Securities Act No.41 of 2016, CEC Africa Investments Limited (“CECA” or “the Company”) announces its audited results for the year ended 31 December 2019.
CEC Africa Investments Limited (“CEC Africa”) recorded a profit of ZMW 4.2biillion in 2019. The profit was mainly as a result of a write back of a tariff short fall of USD 458m which related to the period between 2015 and 2019.
During the year 2019, the Nigerian Regulatory Commission (NERC) issued a minor tariff review which saw an increase in end user tariffs and full cost reflective tariffs expected by the end of 2021. This tariff review saw revenue up by 233% compared to the same period in 2018.
North South Power Company Limited, an associate company contributed profit of K78million, a 195% increase on the previous year.
The Group profit for 2019 at K4,251 million showed a 238% increase on 2018 results; and net finance income which was attributable mainly to the net interest payable on NBET and ONEM bills written off, at K316million, was 150% higher than the previous year.
Acquisition Facility from UBA at KANN
CEC Africa acquired its shares in Abuja Electricity Distribution Company Plc through its subsidiary KANN Utility Company Limited “KANN”). The total amount paid for the 60% share acquisition was US$164million of which US$122million was provided by United Bank of Africa Plc (UBA) of Nigeria through a 7-year acquisition debt facility guaranteed by CEC Africa. In 2016, UBA issued a default notice to KANN based on the failure to meet certain agreed ratios and covenants, and subsequently in November 2018 UBA called the loan.
In 2020, UBA appointed a Receiver for the assets of KANN. However, CEC Africa counter sued as a lender to KANN and put an injunction on the Court proceedings. The high court in Nigeria advised the parties to seek amicable settlement of the matter and the lawyers of UBA and CEC Africa are engaged in talks to find a solution to the dispute.
Dividends proposed and paid
During the period under review, the Company did not declare nor pay any dividend.
By Order of the Board
Clara K Mvula
Head – Corporate Services
[email protected]
www.cecafrica.com
Issued in Lusaka, Zambia on Tuesday, 20th October 2020
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First Issued on 20 October 2020
