Umeme registers decline in profits
HAKIIM WAMPAMBA
Umeme Limited has earmarked Shs 19.8 billion to pay dividends to tis shareholders. This translates into Shs 12.2 per share, a decrease from last year's payment.
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During the annual general meeting for its shareholders and management, the company said it had experienced a tough 2020 that saw its profit dip to Shs 1.6 trillion compared to Shs 1.7 trillion registered in 2019.
Umeme blamed the decline on the effects of Covid-19 which led to an increase in operational costs.
Releasing the financial results for the year that ended December 31, 2020, Selestino Babungi, Umeme's managing director said they will do whatever they can to return to higher levels of profitability.
The board chairman of Umeme, Patrick Bitature said it is wrong for some people to blame Umeme for the high power tariffs.
"We do not set the tariffs. It is ERA which sets them.
At the meeting all members of the board were re- elected. Umeme is not the only listed company to register decline in profits as the Covid-19 pandemic and the subsequent lock down left businesses in survival mode.
