The integration of the Karuma Hydropower plant onto the national grid has catalyzed a 40 per cent growth in Uganda Electricity Generation Company Limited’s (UEGCL) profits.
According to UEGCL data, the company’s revenue for the financial year 2024/25 reached Shs492.345 billion, up from Shs350 billion the previous year.
In her address to the UEGCL board at its 15th annual general meeting, Eng. Proscovia Margaret Njuki, the company’s board chairperson, stated that the reported revenue primarily resulted from a successful first year of commercial operations and dispatch of electricity from the 600 MW Karuma Hydropower Plant.
“We strengthened our performance, consolidated the full commercial operation of the 600 MW Karuma HPP,” she said.
The increase in revenue is attributed to the first full year of commercial sales from the Karuma Hydropower Plant, which was commissioned on June 12, 2024.
However, despite the strong revenue outturn, Profit after Tax (PAT) stood at Shs25.02 billion, a reduction from the previous year due to higher operating expenses, increased depreciation, and interest obligations arising from the Karuma on-lent loan.
The company’s equity position has strengthened markedly to Shs1.54 trillion following the government’s conversion of Shs566 billion in accrued interest on the Karuma loan into equity. According to Eng. Njuki, this intervention enhanced UEGCL’s solvency and long-term financial sustainability.
UEGCL generated 3.63 TWh of electricity this financial year, a 6.7% increase from the previous year. The company operates and maintains four power generation facilities – Isimba (183 MW), Nalubaale-Kiira (380 MW), Namanve (50 MW), and Karuma (600 MW) – with a combined installed capacity of 1,213 MW, representing over 59% of Uganda’s grid-connected installed capacity.
Dr. Eng. Harrison Mutikanga, UEGCL CEO, highlighted challenges including floating weeds and debris that occasionally interfered with generation, low system demand that limited dispatch at Karuma, and outstanding capacity charges for Namanve.
He also mentioned dam-safety risks at Isimba arising from significant spillway defects that required close monitoring and interim controls.
Eng. Njuki said the company is prioritizing resolving key issues at the Isimba Hydropower Project and completing outstanding works at Karuma dam.
“The company is now prioritizing the resolution of the key outstanding issues and defects at the Isimba Hydropower Project and completion of the outstanding works and the timely rectification of defects identified during the Defects Liability Period for Karuma dam,” she said.
Total assets decreased by 1.2% to Shs8.369 trillion from Shs8.407 trillion due to the effect of the full-year Karuma Hydropower Plant depreciation, countered by minimal additions during the year.
Non-current liabilities decreased by 6% to Shs6.4 trillion from Shs6.8 trillion due to repayment of the loan on-lent to UEGCL by the government for the development of the Isimba hydropower plant.
(daily monitor)
