CEC RECORDS K4.4 BILLION ANNUAL REVENUE

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By FRANK MUKUPA

COPPERBELT Energy Corporation (CEC) has recorded an increase in revenue from K3.7 billion in 2017 to K4. 4 billion, company secretary Julia Chaila has said.

Ms Chaila said the company posted positive results mainly on account of increased energy consumption in Zambia.

The company also recorded a profit after tax of K584 million in 2018 compared to K459 million in 2017 and this represented an increase of 27.2 percent in kwacha and 15.5 percent in US

The firm, Ms Chaila said, would ensure that shareholders continue to earn a return through dividend and sustained share price growth.

Ms Chaila said the revenue increased by 8 percent in United State dollar’s terms and 19 percent in Zambian kwacha.

She said this was mainly because of increased energy consumption in Zambia, consistent power supply to the Democratic Republic of Congo market and depreciation of the kwacha against the dollar.

Ms Chaila said the company recorded a profit after tax of K584 million in 2018 compared to K459 million in 2017 and this represented an increase of 27.2 percent in kwacha and 15.5 percent in US dollar.

“Included in the financial results is an exceptional item, being the gain on disposal of shares in CEC Liquid Telecom amounting to K115.8 million (USD11.1 million)” Ms Chaila said.Ms Chaila said there was an improvement in collections and general working capital management as evidenced by the improvement in cash from operations by 13 percent from K703 million to K795 million.

Ms Chaila said the current assets figure includes a receivable of K363.9 million (USD30.5 million) being the deferred payment for the CEC Liquid Telecom transaction.

Ms Chaila said the average kwacha to US dollar exchange rate year was K10.46 (2017: K9.49), while the closing exchange rate was K11.93 (2017: ZMW 9.99)

During the year under review, she said, the company paid a dividend of K272 million (USD 26 million) compared to K199 million (USD 21 million) in 2017.

“The performance of the company’s power supply network throughout the year was satisfactory, meeting all set benchmarks by which we measure performance.

“The good rainfall during the 2017/18 season resulted in sufficient energy in the country’s main dams at Kariba and Itezhi to sustain the company’s requirements for most of 2018 without import support,” Ms Chaila said.

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