KAMPALA (Reuters) – Uganda’s sole power distributor Umeme Limited said on Monday its pretax profits jumped 34% last year as a loosening of COVID-19 restrictions fuelled a surge in demand for energy.
Umeme said its pre-tax profit rose to 642.2 billion shillings ($179 million) in the twelve months to end-December, compared with 478.9 billion shillings a year earlier.
The company said the rise in profitability was mainly driven by a surge in electricity sales which were up 10% from 2020.
“There was increased consumption of power by existing and new customers during the year due to … improved economic environment following the lifting of restrictions,” it said.
Uganda imposed some of Africa’s most sweeping and tightest anti-coronavirus containment measures, including the shuttering of all businesses but the most essential, bans on vehicle movement and school and border closures.
In the second half of 2021, however, it begun gradually easing most measures and in January the economy was fully re-opened.
Umeme, which is listed on the Uganda and Kenya stock exchanges, holds a monopoly 20-year power distribution concession that is due to expire in 2025.
($1 = 3,590.0000 Ugandan shillings)
(Reporting by Elias Biryabarema; Editing by George Obulutsa and Alexander Smith)
