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Umeme Limited, the electrifying juggernaut of Uganda’s power scene, has jolted shareholders with its latest recommendation for a final dividend.
The board of directors, with a glint in their eyes rivaling the shine of a freshly polished lightbulb, have recommended a final dividend totaling a whopping sh88 billion. That’s about sh54.2 per share, enough to make anyone’s eyes twinkle brighter than the night sky.
This recommendation comes on the heels of an interim dividend payment of sh38.9 billion, or about sh24 per share. Add those up, and shareholders are looking at a dazzling total of sh126.9 billion, or sh78.20 per share.
Umeme, in their official statement, made it clear that this recommendation is like a bolt from the blue, contingent upon the nod of approval from shareholders. If all goes according to plan, shareholders can expect to see their pockets jingling by June 28, 2024, with the actual payment zapping in around July 19, 2024.
Now, let’s dim the lights a bit and talk numbers. Umeme’s financial report for the year ending December 2023 reads like a rollercoaster ride through a power surge. Profit after tax took a nosedive, plummeting from sh148.2 billion to a mere sh11.4 billion. Ouch! What caused this blackout in profits, you ask? Well, Umeme blames it on the rise in amortization costs of intangible assets, linked to the end of its concession in March 2025. Looks like even power players have their own power struggles!
Despite this shock to the system, Umeme is staying true to its mission of keeping shareholders lit up like a Christmas tree. The company’s cost of sales shot up by 15.55%, hitting a staggering sh1.45 trillion, thanks to the surge in electricity purchased. But there’s a bright spot in this dim tunnel. Revenue saw a surge of its own, jumping up by 16.37% to a dazzling sh2.20 trillion.
Source: Ankole Times