CEC AGM Financial Performance presentation 31 Dec 2013


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Copperbelt Energy Corporation Limited leading Energy company listed on the Lusaka Stock Exchange has released its Full Year Results presentation.Check out insights into this company in their presentation which appears below
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CEC AGM Financial Performance presentation 31 Dec 2013

  1. 1. CEC PLC AND ITS SUBSIDIARIES Financial Highlights Year ended 31st December 2013 1
  2. 2. GROUP STRUCTURE 1 Copperbelt Energy Plc The Company Realtime Zambia (50% Joint Venture) CEC LIQUID (50% Joint Venture) CEC-KABOMPO HYDRO POWER LIMITED (100% Subsidiary) CEC AFRICA (100% Subsidiary)
  3. 3. CEC AFRICA GROUP 2 CEC AFRICA KANN UTILITY (75% Shareholding) Abuja Energy Distribution Company (60% shareholding) CEC LENUX (100% Subsidiary) North South Power Limited (20% Associate)
  4. 4. The Group • CEC PLC has evolved over the years from one entity to a group of several entities • The financial implication of each investment into the various entities is that CEC Plc injects funds/assets which either translate into equity (shares in the company) or debt, interest bearing loans which can be either repaid or converted to equity; • Expected return can be dividend or capital growth; • CEC Plc investment appetite has grown over the period – Realtime $2million for 50%share holding; – CEC Liquid - $15million for 50% shareholding – CEC-Kabompo Hydro Power Limited – K5,000 share capital, K71million on project development as at 31st December; – CEC Africa – $100million - $1,000 share capital $100million debt as 100% shareholder 3
  5. 5. The Group • The Group is now a combination of electricity transmission, telecomms; distribution; generation • Each of these operations has their own industry peculiarities • In as much as each company prepares its own financial statements, financial reporting standards require that consolidated financials are prepared • The impact on the Group financials is dependent on the level of investment and the performance of the individual companies • Analysis of financial performance of the various companies in the Group 4
  6. 6. The Company Performance 2013 vs 2012: • Increase in revenue of 8% compared to 39% between 2012 and 2011. This was due to 2011 tariff increase which was only accounted for in 2012; • Gross profit margin increased slightly from 27% to 28%; • 25% increase in profit before interest and tax; • Increase in net profit margin of 15%; • 18% increase in earnings per share from 11ngwee per share to 13ngwee per share 5
  7. 7. The Company Financial Position • The Company’s total assets increased by 37% • Net current liability position of K236million due to short term borrowing; 6
  8. 8. REALTIME • Realtime continues to perform well • Last year we reported that they had turned around from net losses to profits • Revenue increased by 17% Gross profit increased by 20%; Net profit increased by 27%; • Significant increase in the equity as the accumulated losses are reduced • Net current liability position only because of the amounts owed within the Group to CEC Liquid who is now their main supplier • 7
  9. 9. CEC LIQUID • Substantial increase in Revenue 46% and Gross profit 51%; • Still in a net loss position, loss has increased by 94% mainly due to high depreciation cost arising out of high property, plant and equipment investment; • Also this year in a tax payment of K1.8million against tax receivable in the previous year. 8
  10. 10. CEC-KABOMPO HYDRO POWER • Has been a project, registered as a company in 2013 • All costs currently carried in CEC Plc’s books as development costs; Note 15 • Accounted for separately after financing, financing arrangement underway even as works have continued Pages 32 to 34 of Annual Report. 8
  11. 11. CEC AFRICA • First year of operations; • 75% investment in KANN which itself held 60% in Abuja Electricity Distribution Company • 20% in North South Power which itself has interest in the Shiroro Hydro Project • Main sources of Revenue AEDC K240m; Commission K10million; • High costs in AEDC $91million (K456million); • One off gain of K716million (See Note 7); • Liabilities mainly to CEC Plc 9
  12. 12. CONSOLIDATED RESULTS Performance 2013 vs 2012: • Increase in revenue of 26%, most attributed to contribution from CEC Africa K253million • Group Gross profit margin reduced from 28% to 20%, mainly due to the gross loss in CEC Africa, high energy costs; • Reduction of Gross Profit Margin by 12% - CEC Africa gross loss; • Increase in Profit before interest mainly due to CEC Africa one-off bargain purchase gain; 10
  13. 13. CONSOLIDATED RESULTS Financial Position • Increase in Balance Sheet size due to the incorporation of CEC Africa, mainly the Abuja assets. • Net Current Liability of Group K652million, largest current liabilities were: – Current portion of interest bearing loans K514m • The Company borrowed to finance the investments in West Africa, short term portion refinanced through long term debt – Trade and other payables K587m • Trade creditors K438m K203 Company (same level as previous year), CEC Africa significant level of trade creditors at year end in AEDC, negotiations are underway with the Government on the liquidation of this debt. 11
  14. 14. THANK YOU