Umeme posts a 46.5%y/y jump in FY13 net profits, EPS at KES 1.75;
65.3% increase in DPS to KES 0.84. Umeme Limited, the Uganda electricity distributor released FY13 results to December 2013 with a 9.3%y/y increase in Gwh sold to 2,118. System losses reduced from 26% to 24.3%. Operating, margins improved from 9.8% to 14.3%. While there was a 4.5% reduction in distribution tariff, improved collection rates and reduced system losses led to the improved performance. The company declared a final dividend of KES 0.57, with books closure on 6th June 2014 payable on or around 30th June. For the year, the company posted a 65.3%y/y increase in DPS to KEs 0.84. The final report from Ad hoc Committee on Energy established in 2011 presented its report in 2013 recommending the termination of the Umeme concession to distribute electricity in the country- arguing the provisions of the concession were unfair to Uganda. The Ministry of Energy however seems reluctant to cancel the concession, we believe, partly because of the payments required to be paid back to Umeme for investments already made and also that some of the arguments advanced by the committee may have been partly inaccurate. (Company filing, Standard Investment Bank)
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