COPPERBELT Energy Corporation (CEC) has said the macro-economic environment in Nigeria and the depreciating Naira has increased foreign exchange risks resulting in the loss of K1.140 million.
This is according to CEC’s summary consolidated unaudited results for the period ended June 30, 2016 made available to the Times yesterday.
The company said the macro-economic environment in Nigeria continued posing some challenges to the group’s operations as well as commodity prices which impacted on its customers’ liquidity and ability to meet financial obligations.
“The depreciating Naira resulted in increased foreign exchange risks translating into a loss of K1.140 million,” it stated.
Operationally on the Zambian end, the statement said the business in the stated period continued to operate on partial force majeure under the bulk supply agreement with its main power supplier and power supply agreements with mine customers.
“This entails that we can only access 70 per cent of our power requirements from Zambian sources while the rest of our requirements had to be sourced outside the country.
The challenges relating to low commodity prices on the global market have led to some of its customers scaling back on their operations resulting in power sales dropping by 16 per cent.
The company expected high demand to return by mid to end of 2017 when the projects that a number of its customers have been implementing begin to use power.
Source: All Africa