During the financial year ended 31 March 2019 CEC Africa’s revenue was ZMW1.35 billion (US$120.86 million) (2018: ZMW2.07 billion (US$217.17million). The net loss was at ZMW3.35billion (US$298.95 million) (2018: Loss ZMW 3.23billion (US$337.86 million).
CEC Africa associate company, North South Power Company Limited (NSP), contributed a profit of US$8.10 million (2017: US$4.60 million) and declared a dividend of NGN10.00 bn (US$27.00 million) in 2018. However, the Group continues to make a gross loss mainly due to tariff shortfalls in the electricity pricing regime and the increasing cost of energy arising from the Power Purchase Agreements signed between the Nigeria Bulk Electricity Company (NBET) and the generation companies. The cost of purchased energy increased by 19.00% to US$293.00 million between 2017 and 2018. The net loss, which increased by 1.00% to US$316 million between 2017 and 2018 continued to erode the shareholders’ equity.
No dividends were declared and paid by the Company during the year (2018: Nil).

Revenue for year ended 31st December 2017 largely remained relatively flat at K2,070.2 million (US$216.8 million), a 6% decrease from the previous year. This is despite the slight improvement in billing efficiency at Abuja Electricity Distribution Company Plc (AEDC) on the back of low energy supply growth.

The company incurred a net loss for the year ended 31 December 2017 of K2,578.5 million (US$270.05 million) [(2016: Loss K 942.73 million (US$91.87 million)] and, at that date the company’s total liabilities exceeded total assets by K3,171.58 million (US$318.65 million) [(2016: K479.58 million (US$48.60 million)]and the current liabilities exceeded its current assets by K6,279.87 million (US$631.00 million) (2016: K3,331.73 million US$337.63 million).

The Group continued to expend significant effort to further restructure the US Dollar denominated acquisition finance facility that was obtained from UBA to finance the acquisition of 60% of AEDC through KANN Utility Company Limited (KANN). Interest payments on the facility are current.
In Nigeria, the implementation of the Power Sector Recovery Program (PSRP) commenced signalling the commitment of the Federal Government to ensure commercial viability of the entire power sector value chain, including, ultimately delivering optimal benefit to the end users. In the short to medium term, it is expected that the application of the PSRP principles will turn the CEC Africa asset, the Abuja Electricity Distribution Company Plc (AEDC) into a profit making entity.

No dividends were declared and paid by the Company during the year (2016: Nil).

The Company incurred a net loss for the year ended 31 December 2016 of K2, 656.58 million (US$269.21 million)(2015: K6.15 million (US$0.945 million)) and, at that date the Company’s total liabilities exceeded total assets byK1, 630.08 million (US$158.85 million (2015: total assets exceeded total liabilities by K805.73 million (US$106.36million)) and the current liabilities exceeded its current assets by K1, 808.36 million (US$176.22 million) (2015:K284.41 million (US$37.54 million)).

The Company’s net loss was mainly due to the recognition of impairments on the trade and other receivables& inter company loans with its subsidiary, KANN, of K2,548.53 million (US$258.26 million) and an impairment of its investment in associate, North South Power Limited of K140.61 million (US$14.25 million). The devaluation of the Naira against the US Dollar has also resulted in significant exchange losses recognised in the financial statements of KANN. Also CEC Africa has guaranteed the loan between KANN and the UBA. A notice of default has been issued by UBA which has resulted in the recognition of a liability in the Company’s financial statements.

CEC Africa is refocusing efforts on consolidating and stabilizing the Nigerian operating assets in the immediate to medium term, and position for growth in the longer term. These efforts include:

• Immediate sale of CECA’s stake in Sierra Leone to a reputable institutional investor/developer.
• Divestment of some early stage developments given the bank ability challenges and limited resources available.

No dividends were declared and paid by the Company during the year (2015: Nil).