Copperbelt Energy Corporation Plc (LUSE: CEC) reported a net loss of $164 million (2013: $87 M profit largely due to a one-off exceptional gain) in financial year (FY) 2014. Earnings per Share (EPS) came in at negative $0.108 cents (2031: $0.087 cents):
The loss was primarily driven by:
- 128% increase in operating expenses
- 325% increase in finance costs
CEC recorded an operating loss of $100 million. This was the first time that the group integrated the full results of the recently acquired (60% stake) Abuja Electricity Distribution Company (AEDC). AEDC posted a $122 million EBIDTA loss, which significantly contributed to the CEC’s net loss. The AEDC loss was due to the business operating under interim rules, resulting in accrued losses (which are recoverable in the future).
CEC experienced revenue growth of 88% year-on-year to $581 million in FY 2014:
The growth in the revenue was also largely due to AEDC which saw the group’s electricity transmission and distribution revenue grow by 8% and 605% year-on-year, respectively. Domestic wheeling also grew by 18%.
CEC’s stock price closed the year at K0.62, down 15.1% in 2014.
No dividend was recommended for FY 2014. However, subsequent to the year end on 27 January 2015, an interim dividend of $0.86 cents per ordinary share for 2015 was proposed for payment by the Directors.
In their outlook for 2015, the company said:
Going into 2015, our expectations as a Group will be to continue on the growth trajectory set for each unit and as a composite. Consolidating the gains recorded in 2014 and forging new opportunities, both in Zambia and internationally, to ensure a sustained rich pipeline of projects and viable operating assets continues to be our goal. We will continue renewing and strengthening the network infrastructure of our respective business units, re- engineering processes, and focusing and delivering on the critical needs of each unit. We are confident that the attractiveness of African markets will keep the demand for power and power infrastructure on the upswing, placing us in good stead to forge ahead with our business growth and expansion agenda in new, previously un-entered markets as well as existing and more familiar ones.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *