In compliance with the requirements of the Securities Act No. 41 of 2016, CEC Africa Investments Limited announces its audited results for the year ended 31 December 2017.
I. Financial Highlights
- The Company is committed to its responsibility to its shareholders to ensure the shareholders earn a return through dividend payment and sustained share price growth. The year under review exhibited both the immense promises of our Nigerian investments and the continued challenges of the road ahead for the company In Nigeria where the Group has operating companies, challenging conditions in the operating environment make it difficult for the business to be profitable…
- Revenue compared to last year is down 13% mainly due lower power generation in Nigeria
- On a positive note the group’s associate, North South Power has been profitable and contributed a share of profit of K43.6m compared to a profit of K110m in the prior year. NSP declared a dividend of N8.68bn ($28.5m) during 2017. The implementation of the Payment Assurance Facility (through the PSRP) has had a positive impact on generation companies such as NSP and enhanced its liquidity position.
- The group’s loss for the year at K2.97 billion is lower than the prior period loss of K3.59billion.
- Exchange losses on Net Finance costs have continued to be a challenge to the group contributing a significant portion to the Finance costs. During the year at K1.435 billion Net finance costs are slightly lower than the same period last year which stood at K1.441billion.
II. CECA Profile
The Company holds a Category 1 Global Business Licence under the Mauritius Companies Act and is governed by the Financial Services Act 2007. CEC Africa has shareholding in four companies, 75% shareholding in KANN Utility Company Limited (KANN) a Nigerian registered investment holding company which in turn owns 60% equity in Abuja Electricity Distribution Company Limited (AEDC Plc), and 100% in CEC Africa Hydro Investments Limited, a company incorporated in Mauritius which in turn owns 24.3% equity interest in North South Power Company Limited (NSP) a Nigerian registered company which has a 30 year concession to operate the 600MW Shiroro Hydro Power Plant. In 2015, CEC Africa acquired two wholly owned subsidiaries in Zambia and Nigeria namely CEC Africa Services Limited (CEC Africa Services) and Copperbelt Enery Nigeria Limited (CEN) respectively to take care of its interest in the two countries.
III. Dividends proposed and paid
During the period under review, the Company did not pay any dividend.
IV. Health, Safety, Environment and Social
The Group has established a Health and Safety Policy to manage health and safety risks effectively and to ensure that its business activities, services or products do not harm employees, suppliers, customers or the public.
By Order of the Board
Head, Corporate Services
Issued in Lusaka, Zambia on Thursday, 10th May 2018
|Lusaka Securities Exchange Sponsoring Broker|
Stockbrokers Zambia Limited (SBZ) is a member of the Lusaka Securities Exchange and is regulated by the Securities and Exchange Commission of Zambia
First Issued on Thursday, 10th May 2018
CECA.zm | 2017 Abridged financial results.pdf