NAIROBI, Kenya, Mar 22 – Umeme Limited has issued a profit warning for the financial year ending December 31, 2020, which will be lower than the earnings in 2019, by more than 60 percent.
The NSE listed ompany through a statement revealed that the lower projections are a result of the pandemic effects, amongst other reasons.
“The reduction in profitability is attributed to the effects of the COVID-19 pandemic, regulatory lag, and suspension of the government’s free connections policy,” reads the statement.
Through its company secretary, Shonubi Musoke, and Company advocates, the firm has asked its shareholders to exercise caution while dealing with the company’s shares.
The company is also optimistic that the recovery in the business environment as government responds to the pandemic will support stronger operational and financial performance in the year ahead.
“Further details of the company’s annual financial performance will be disclosed in the audited financial statements to be published and circulated to shareholders,” it added.
Umeme Limited is Uganda’s largest electricity distributor, distributing 97 percent of all electricity used in the country.