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Annual Report Summaries, Investee Companies

Copperbelt Energy Corporation Plc (CEC) Extract from 2020 Annual Report

The Bulk Supply Agreement between CEC and ZESCO expired on 31st March 2020. A new agreement was not signed as the two parties could not agree on terms and conditions that were acceptable to both. This is likely to impact CEC negatively especially when it comes to planning for CAPEX.  

ZCCM-IH is monitoring the impact of the new Energy Regulation Board (ERB) and Electricity Acts are going to have on the operations of CEC with the key one being the increased powers granted to the ERB and the government to have more oversight in important dynamics such as tariff rates and Power Purchase Agreements (PPA’s) with end users including the mines.  

During the year under review CEC reported total revenue of ZMW6,910.59 million (US$370.93 million), [ 2019: ZMW4,101.92 million (US$307.93 million)] and profit after tax of ZMW104.5 million (US$5.61 million), [December 2019: ZMW26.90 million (US$2.02 million) loss]. 

During the year, the CEC share price opened at ZMW 1.25 per share closing at ZMW 1.10.  

Dividends declared and paid during the year amounted to ZMW164.9 million (US$8.2 million) (December 2019: nil).  

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