Umeme Limited, Uganda’s leading electricity Distribution Company, has this morning announced Ushs 7.6 B dividend pay-out per ordinary share to all its shareholders for the year ended 31 December 2017.
According to Grace Semakula, the Umeme investor relations manager, the dividend was recommended by the Board of Directors during their first meeting of 2018 in Kampala early this month.
Now, Umeme will hold its Annual General Meeting on 17 May 2018, if approved, the final dividend subject to deduction of withholding tax, where applicable, will be paid on or about 6 July 2018 to shareholders in the books of the Company at close of business on 20 June 2018.
‘The dividend will be paid into the shareholder bank accounts or mobile money accounts whose details are maintained by the Securities Central Depository (SCD),” Semakula said.
He explained that the total dividend pay-out of Ushs12bn was based on the performance of the Company over the period January to December 2017.
Marie Nassiwa, the Chief Financial Officer, reaffirmed the company’s commitment to continue to employing ‘…the most appropriate technology to bring down energy losses, sustain a rigorous safety regime and invest in strengthening the network to improve the quality and reliability of supply…’
Nassiwa said customers increased by 18.3% during the year to 1,125,291, with an additional 174,477 grid connections compared to 157,270 in 2016.
She said the company was pleased with the good operational performance during the year highlighted by further reductions in distribution losses and above-target revenue collections.
On the issue of concession, where the president recently asked the energy minister to cancel the company’s contract, Umeme says government would need to pay them USD 520 million.