Puma Energy Zambia (LUSE: PUMA) reported a 21% year-on-year decrease in net profit to K54 million in financial year (FY) 2014. Earnings per Share (EPS) came in at K0.108 (K0.136 in 2013):
The decrease in net profit was driven by:
- Reduction in sales volumes
- K9.3 million in exchange losses from the depreciation of the Kwacha in 2014
- A 45% increase in finance expenses
Operating profit decreased by 1% year-on-year to K103 million in FY 2014. No provision was made for a Zambia Revenue Authority (ZRA) tax assessment in relation to imports of mining solvents made between 2007 and 2008 as it was not completed by year-end.
The company experienced revenue growth of 7% year-on-year to K3.2 billion in FY 2014:
This was driven by volume growth in retail and aviation segments. However, overall sales volumes saw 3.3% from the previous year as a result of a decline in activity from major customers in the mining sector.
Puma Energy's stock price closed the year at K1.2, down 6.25% in 2014.
The Directors recommended a final dividend of K0.046 per share for FY 2014 to be approved at the annual general meeting next month.
In their prospects for 2015, the company said:
With the company's new business prospects in some of its business segments, sales volumes are expected to increase in 2015. Due to its strong investment program, the Company is confident that it will continue to grow and remain a key player in the energy sector. Safety of operations and personnel will remain a key priority.
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. * * *