CEC profits soar
Published On January 7, 2014 » 3458 Views» By Administrator Times » Business, Stories
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COPPERBELT Energy Corporation Plc (CEC) revenue has swelled to K1,353 million for the period up to March 31, 2013 from K1,172 million the previous financial year.

The company in 2013 also posted a net profit of K111 million from K115 million it achieved in 2012.

Giving an update, the company’s financial operations, ZCCM-Investment Holdings chief executive officer Mukela Muyunda said revenue increased from K1,172 million for the period to March 31, 2012 to K1,353 million for the period to March 31, 2013.

ZCCM-IH has 20 per cent shares in Copperbelt Energy Corporation.

Mr Muyunda said in the period under review, the company managed to complete feasibility studies of the Kabompo Hydro Power Project (KHPP) and the Environmental Impact Assessment was conditionally approved by the Zambia Environmental Management Agency (ZEMA).

He said Sinohydro Corporation Limited emerged as the preferred contractor with the Engineering, Procurement and Construction contract initialised in the financial year under review. The project was expected to reach financial closure last year after which construction was to commence.

“The company also incorporated CEC Africa Limited (Mauritius), in which it will retain a partial equity stake and upon which vehicle will drive its Africa growth strategy.

“Pilot investments will include the acquisition of 60 per cent of the Abuja Electricity Distribution Company (“AEDC”) in the Abuja district of Nigeria and the development of a 120 megawatts Heavy Fuel Oil Power Plant in Arandis, Namibia,” he said.

The Sale and Purchase Agreement for the AEDC was signed on February 21, 2013, for a purchase consideration of US$164 million for a 60 per cent stake in the company.

The average maximum demand for the year ended December 2012 increased by 9.6 per cent from 4,81.2 megawatts in 2011 to 5,27.4 megawatts in 2012.

Collectively, the NFC South East Project brought in an additional 45 megawatts in 2013, the Mopani Synclinorium Project 25 megawatts in 2013, China Copper Mines with 5 megawatts in first quarter of 2013.

And Lubambe Copper Mine (additional 15 megawatts) are expected to add an additional 90 megawatts of load in the medium-term.

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