In compliance with the requirements of the Securities Act and the Listing Rules of the Lusaka Securities Exchange, CEC Africa Investments Limited announces its unaudited results for the period ended 30 June 2021.
Despite the recorded net loss of ZMW 576 million (Kwacha Five Hundred Seventy-six Million) for the half year 2021, CECA performance continued to make steady improvement regarding various issues that have affected its performance in previous years, including:
• Non-Cost Reflective Tariffs:
In 2019, the Nigerian Electricity Commission issued a minor tariff review which enabled Abuja Electricity Distribution Company Plc (“AEDC”) to make tariff adjustments for prior year tariff short falls. The tariff adjustments have continued in 2021 and as a result, CECA has made a gross profit of ZMW 609 million (Kwacha Six Hundred Nine Million). The Company has continued to reevaluate its cost structure to ensure that costs are managed within the Group.
• Negotiation on the Acquisition Facility from UBA at KANN
CEC Africa acquired its shares in Abuja Electricity Distribution Company Plc through its subsidiary KANN Utility Company Limited. The total amount paid for the 60% share acquisition was US$164million of which US$122million was provided by United Bank of Africa Plc (UBA) of Nigeria through a 7-year acquisition debt facility guaranteed by CEC Africa. In 2019 UBA appointed a Receiver at KANN as result of default on the loan facility. The Company also took measures to protect the interests of its shareholders by placing an injunction against the appointment of a receiver and engaged UBA to restructure the loan.
CEC Africa has made significant progress in negotiating a loan restructure with UBA. The restructure negotiations have been facilitated by the Central Bank of Nigeria and Bureau of Public Enterprises. As a result of these negotiations UBA has withdrawn the appointment of a receiver at KANN from the courts of Nigeria, and the Central Bank of Nigeria has provided guidance on the outstanding loan amount.
Shareholding
Since acquiring 97.5% shares in the Company in 2020, BP Investments Limited, a company registered in Nigeria, has through a general buy order increased its shareholding to 98%.
Dividends proposed and paid
During the period under review, the Company did not declare nor pay any dividend.
By Order of the Board
Clara K Mvula
Head, Corporate Services
[email protected]
www.cecafrica.com
Issued in Lusaka, Zambia on October 7, 2021
