The Uganda Electricity Generation Company Limited (UEGCL) has posted a net profit of 27.9 billion Ugandan Shilling (UGX7, 652,970) projecting the company’s growth trajectory for the year ending 2022.
The company grew its revenue from UGX 169.7 billion to UGX210.9 billion representing 24.3%growth, with its operating profit rising from UGX 54.7bn to UGX 66.3bn representing 21%growth.
According to a report by Daily Express, the company also grew its assets from UGX7trillion to UGX7.2 trillion representing 2.9%.
Board chairperson of UEGCL, Eng. Dr. Proscovia Margaret Njuki revealed this during the company’s 12th Annual General Meeting held on Tuesday, 20th December 2022 at Kampala Serena Hotel.
According to her, the growth was made possible through continued operations of the flagship Isimba power project and the newly acquired Namanve (50MW) Thermal power plant.
“UEGCL has now gained the three years of hands-on operational experience, which has indeed proven that the indigenous model of the company has borne the fruits of success,” Ms Njuki said.
“In summary, therefore, UEGCL is now a profitable going concern and the future is bright as we prepare to commission the Karuma (600MW) hydropower plant,” she added.
Ms Njuki further explained that from UEGCL’s financial perspective, the company has for the fourth year running, continued to exhibit bottom-line profits, with Isimba continuing to be the cash cow of the Company.
“In line with the National Development Plan, government manifesto and Vision 2040, the Company’s strategy continues to prioritize increased installed capacity to support the generation of affordable electricity for socio-economic development,” she said.
During the same financial year, UEGCL was also able to see an additional revenue stream from Namanve Thermal Power Plant (TPP) which further boosted the company’s income in-flow.
“Together, Isimba and Namanve accounted for 80% (UGX 169 billion) of the Company’s income.The Nalubaale–Kiira Power Complex concession accounted for about 5% (UGX10.5 billion), while other incomes accounted for15%(UGX31.5billion).”
The increase in profit levels also enabled UEGCL to service its debt obligations on Isimba to the tune of UGX129.8 billion (Principal and Interest).
The UEGCL annual general meeting was attended to by the company’s shareholders who included Hon. Dr. Ruth Nankabirwa, the Minister of Energy and Mineral Development and Hon. Matia Kasaijja – Minister of Finance, Planning and Economic Development who was represented by Hon. Amos Lugolobi – State Minister for Finance, Planning, and Economic Development.
Source: https://energynewsafrica.com