Uganda Electricity Distribution Company Limited, the state-owned power utility, posted yet another full-year loss, although its recent takeover of the country’s electricity distribution from Umeme Limited may ultimately prove beneficial in improving its financial performance.
The electricity distributor recently released its results, showing a full-year loss of Shs10.9bn ($3mn) in the year to June last year. This further decline, with a loss of Shs2.2bn in the year to June 2023, is in line with the company’s historical performance; it has not made a profit since 2018, the furthest back that its publicly available financial statements go. However, it reported an increase in revenue from operations and other operating income.
Also read: What’s at stake as Uganda’s electricity distribution changes hands?
The company’s total income rose 25.7 per cent to Shs111.3bn, driven by revenue from its operations. However, expenses grew at a faster rate of 41.5 per cent, primarily due to the cost of sales, which increased by 66.7 per cent to Shs53.1bn.
