PUMA Energy Zambia records 52% increase in Profit After Tax for the 2020 FY
Energy, Puma Energy (Z) Plc

The only LUSE listed oil marketing company has recorded an approximately 52% increase in profit after tax to K160.18 million, according to PUMA Energy’s latest SENS announcement.

“For the year ended 31 December 2020 the Company recorded a profit after tax of K160.18 million compared to K105.55 million recorded in the previous financial year”, read the SENS announcement issued by PUMA’s Company Secretary, Kalunga Lutato, on 9 April 2021.

The improved performance came with the company reporting volumes being 5% lower than those achieved last year. This was primarily due to the adverse impact of the Covid-19 pandemic to the business.

According to an earlier statement published by the company, “in accordance with the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the Board of Directors of Puma Energy Zambia PLC hereby advises the Shareholders of the Company that the Earnings per Share and Headline Earnings per Share for the year ended 31 December 2020 are expected to be approximately 52% higher than for the year ended 31 December 2019”. This was the first signal from the company that it would record an improved financial performance.

The improved performance was primarily attributed to two factors. Firstly, during the year ended 31 December 2020, the company recorded stockholding gains following the price adjustment effected on 27th December 2019. Secondly, FX gains on operations were recorded compared to FX losses on operations in the previous year.

During the Financial Year under review, the Company invested over K99.06 million in capital projects mainly in its retail network despite the Kwacha depreciating by roughly 51% against the United States Dollar from K13.98 in 2019 to K21.12 in 2020.

The company recorded a profit before finance costs, taxation and exchange gains of K269.00 million for the year ended 31 December 2020 compared to K210.75 million for the previous year, while the pre-tax profit was K243.72 million compared to K163.35 million the previous year.

According to the abridged financial statements the company recorded increased earnings per share of 0.320 as compared to 0.211 in 2019. This resulted in the board of directors resolving to a dividend of K30 million (K0.06 per share) for the year ended 31 December 2020 which will be declared at the 59th Annual General Meeting (AGM) to be held on Friday 30th April 2021.

Moving forward, the company’s new business prospects in key business segments coupled with new reactive strategic initiatives will enhance the sales volumes performance of the business hence allowing the company to maintain its leading role in the energy sector.

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