Decline In Profits Recorded At UMEME

Posted by: Kyeyune Andrew Jonathan in Uganda news May 8, 2021

Umeme earmarked a shs19.8 billion to pay dividends to its shareholders which is translated to shs 12.2 per share. This showed a decrease from last year’s payment.

The electricity company said it experienced a tough 2020 during the annual meeting for shareholders and management.

The year saw its profit dip to shs 1.6 trillion compared to shs 1.7 trillion registered in 2019. The company blamed this decline on the effects of Covid-19 which led to an increase in operational costs.

Umeme’s managing director Selestino Babungi, after realizing the financial results of 2020, said they will do whatever to return to their higher levels of profitability.

One of the board members said it is wrong for some people to blame Umeme for the high power tariffs. He said it is the era that sets the tariffs, not Umeme.

All members of the board were re-elected to retain their positions at the meeting.

Umeme is, however, not the only listed company to register a decline in profits after the Covid-19 pandemic.

The pandemic caused the country to invoke a subsequent lockdown that left businesses in survival mode.

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