2023-08-21 06:45:50
Ugandan electricity utility Umeme Limited’s pre-tax profit fell 82% in the first six months of the year, hurt by rising depreciation costs, the company said on Monday.
Profit before tax fell to 16.7 billion Ugandan shillings ($4.5 million) in the first half of this year, down from 92.8 billion shillings recorded in the same period in 2022.
Its depreciation costs have nearly tripled due to the impending end of its operating license, which expires in March 2025.
Umeme has a 20-year license to operate as the sole electricity distributor in the East African country, but the government of President Yoweri Museveni has said it intends to take over. charges the distribution of electricity with the aim of reducing consumer tariffs.
The government’s decision not to renew Umeme’s license beyond March 2025 means that it will cease operations unless it engages in other business activities.
($1 = 3,730.0000 Ugandan shillings)
1692601414
#halfyear #profit #tax #Ugandan #electricity #company #Umeme #falls #Today #Zonebourse
