The only listed power utility in Zambia has advised shareholders that it expects improved earnings when it produces its 6 month unaudited financial statements.
“In accordance with Section 3.4(b) of the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of the Copperbelt Energy Corporation Plc (“CEC” or “the Company”) hereby advises the Shareholders of CEC that the Earnings Per Share (“EPS”) for the six months ended 30th June 2021 is expected to be approximately 180% better than that for the six months period ended 30th June 2020”, read a statement issued by Company Secretary Julia C Z Chaila on 10th September 2021.
The informed shareholders that the improved performance was attributed to a reduction in impairment losses which is suffered in the previous financial year. “The movement in EPS is primarily attributed to the reduction in the level of impairment loss provision on trade receivables computed in compliance with IFRS 9”. Furthermore, the provision for impairment losses for the 6 month period were far lesser than the same period prior. “The impairment loss provision for the half year of 2021 is 96% lower relative to the comparable period in 2020”.
In their 2020 Annual Report, the company identified the Konkola Copper Mines receivable as the root cause of the impairment. However, in the current financial year, CEC Plc who are out of contract with KCM did not suffer the impairment hence the drastic reduction henceforth. “This is as a result of the Company having taken a significant portion of the impairment in 2020 on the KCM debt to CEC, which to date continues to remain unpaid. The Company expects to take minimal impairment relating to KCM in 2021.”