For the half year ended 30 June 2021 the Company recorded a profit after tax of K4.235 million compared to K80.064 million recorded in the previous financial year. Volumes were 4% lower than those achieved for the same period last year.
A profit before finance costs, taxation and exchange losses of K79.466 million was achieved for the half year ended 30 June 2021 compared to K148.402 million for the previous year, while the pre-tax profit was K45.713 million compared to K126.632 million the previous year.
The key highlights of the financial performance for the half year were as follows:
1. Volumes for the yearreduced by 4% compared to the previous year. This was primarily due to the impact of Covid-19 pandemic.
2. Revenue increased by 14% from K2,222 million in 2020 to K2,543 million in 2021 mainly on account of zero-rating VAT on fuel products and the impact of the Zambian Kwacha depreciation on US Dollar selling prices.
3. Profit before tax was lower by 64% compared to the previous year. This was mainly on account of foreign exchange losses compared to foreign exchange gains recorded in 2020.
4. Effective tax rate is high on account of tax assessment of K22.45 million arising from adjustments from a tax audit.
5. During the half year under review, the Company invested over K31.5 million in capital projects mainly in its Retail Network and in safety and compliance for Aviation.
6. During the half year under review, the Kwacha depreciated by about 7.18% against the United States Dollar from K21.119 at beginning of the year to K22.635 at end of June 2021.
Dividends Proposed
For the period under review the Board did not propose an interim dividend.
PROSPECTS
Despite the negative effects of the Covid-19 pandemic, the company has put in place adequate recovery plans to help in achieving its year-end target. The company is determined to continue with its investment program and is confident to remain a key player in the energy sector. Safety of operations, personnel and customers will remain a key priority.
By order of the Board
Kalunga Lutato
Company Secretary
Issued in Lusaka, Zambia on 30 September 2021