UETCL posts sh95b profit

The Uganda Electricity Transmission Company Limited (UETCL) has ridden on the strong performance of the Ugandan shilling last year against foreign currencies to record sh94.9 billion in profits for the financial year ended June 30th 2023.

This was revealed as the company held its 15th annual general meeting at the Ministry of energy and Mineral Development in Kampala on Friday.

The company's financial results indicate that the sh95b profit, representing a 152% increase from sh37.7b, was aided by appreciation of the Ugandan shilling against foreign currencies, reducing the company’s expenses when meeting its financial obligations.

“…because we report in shillings, all our borrowings that are denominated in foreign currency recorded a decrease in terms of the amount we have to pay in terms of shillings. Sh60b of the sh95b profit came from foreign exchange gains,” Joshua Karamagi, the company’s chief executive officer told journalists on Friday.

While the company recorded a 7% growth in energy sales by volume, revenue realised only grew by 2.6% from sh1.35 trillion the previous year to sh1.385.7 trillion during the period under review.

The energy and mineral development minister, Ruth Nankabirwa, who is also the company’s majority shareholder lauded the company for the good performance.

“We have seen more off-taking of the electricity that is being supplied by UETCL to distribution companies which is a very good gesture. On financial management, we also received an unqualified opinion from the Auditor General,” Nankabirwa said.

“We are very happy that there was nothing to do with corruption as far as the management of UETCL is concerned from the Auditor General’s report,” Evelyn Anite, the state minister for privatisation and investment who is also the minority shareholder, said.

UETCL is the agency mandated to operate the national grid and evacuate all electricity generated from generation facilities in the country at high voltage.