Business

Umeme to payout Shs19.8 billion in dividends

Mr Patrick Bitature, Chairman of the Board speaks during the AGM yesterday

Umeme shareholders today approved a total dividend payout of shs19.8 billion after endorsing shs12.2 per ordinary share based on the company’s 2020 performance.

 The dividend will be paid out on or about July 19th 2020, to shareholders in the Company’s register at the close of business on 25th June 2021. 

The shareholders also re-elected Mr. Patrick Bitature as the Chairman of the Board via the hybrid/ electronic AGM held at the Kampala Serena Hotel.

Hon Gerald Ssendaula and Ms. Florence N Mawejje were also re-elected as directors of the Board.

The AGM also approved the annual financial statements for the year-ended 31 December 2020.

The AGM also approved the appointment of M/S Ernst & Young Certified Public Accountants as external auditors for 2021 and the remuneration of the Non- Executive Directors. 

Mr. Bitature thanked the shareholders for their continued trust and confidence in him to lead the Board of Uganda’s leading electricity distributor at this pivotal period in time.

“We are continuing to engage the government on an early concession renewal post the 2025 concession. We are optimistic we shall reach a mutually beneficial agreement,” Mr. Bitature said.

Bitature said even with the difficult foregoing circumstances, Umeme has transformed for the better and for the people. “We continue investing in digital and ICT solutions for the ease of our business solutions and services for our customers,” he said.

He said the issues around reduction in power tariffs was an interest to all the energy stakeholders.

“Umeme remains committed to playing its part of the equation through driving distribution efficiencies, increasing consumption and investments in the system to evacuate the increased generation capacity,” Mr. Bitature added.

Mr. Selestino Babungi, the Managing Director, said although the profits declined, the giant utility managed to complete its capital investment programme of $75m (about sh279b) to improve the network distribution capacity, supply reliability and operational efficiencies.

The investment went into the building and upgrading 7 substations in Ntinda, Kakiri, Gulu, Mbale, Bombo and Nakawa, constructing distribution integration lines with transmission infrastructure, expansion of distribution transformer zones and conversion of 168,000 customers to prepayment metering.

He said the performance reflected the challenging operating and regulatory environment.

“We shall continue to focus on safety, continuity of electricity supply services, resolution of the regulatory matters, operational and financial performance,” he said.

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