The Uganda Electricity Generation Company Limited (UEGCL) posted Shillings 27.9 billion net profit projecting the company’s trajectory growth for the year ending 2022.
This was revealed by UEGCL Board chairperson, Eng. Dr Proscovia Margaret Njuki during the 12th Annual General Meeting held on Tuesday, 20th December 2022 at Kampala Serena Hotel.
Eng. Njuki said the growth in profit was depicted in the Financial Year 2021/22 by a growth in revenue from UGX 169.7 bn to UGX 210.9 bn (24.3%growth), with its operating profit rising from UGX 54.7bn to 66.3bn (21%growth), and a growth in assets from UGX 7 trillion to UGX 7.2 Trillion (2.9%)
The Board chairperson explained that this growth was made possible through continued operations of the flagship Isimba power project and the newly acquired Namanve (50MW) Thermal power plant.
“UEGCL has now gained the three years of hands-on operational experience, which has indeed proven that the indigenous model of the company has borne the fruits of success,” Ms Njuki said.
“In summary, therefore, UEGCL is now a profitable going concern and the future is bright as we prepare to commission the Karuma (600MW) hydropower plant,” she added.
Ms Njuki further explained that from UEGCL’s financial perspective, the company has for the fourth year running, continued to exhibit bottom-line profits, with Isimba continuing to be the cash cow of the Company.
“In line with the National Development Plan, government manifesto and Vision 2040, the Company’s strategy continues to prioritize increased installed capacity to support the generation of affordable electricity for socio-economic development,” she said.
During the same financial year, UEGCL was also able to see an additional revenue stream from Namanve Thermal Power Plant (TPP) which further boosted the company’s income in-flow.
“Together, Isimba and Namanve accounted for 80% (UGX 169 billion) of the Company’s income. The Nalubaale–Kiira Power Complex concession accounted for about 5% (UGX10.5 billion), while other incomes accounted for 15% (UGX31.5 billion).”
The increase in profit levels also enabled UEGCL to service its debt obligations on Isimba to the tune of UGX129.8 billion (Principal and Interest).
The UEGCL annual general meeting was attended by the company’s shareholders including Hon. Dr Ruth Nankabirwa, the Minister of Energy and Mineral Development and Hon. Matia Kasaijja – Minister of Finance, Planning and Economic Development who was represented by Hon. Amos Lugolobi – State Minister for Finance, Planning, and Economic Development.
About UEGCL
UEGCL was incorporated by the finance ministry in 2001, following the breakup of the Uganda Electricity Board. The company is responsible for the operation, maintenance and improvement of the power stations owned by the Government.