Umeme Limited Issues Profit Warning, Signals Loss After Uganda Power Deal Exit
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Umeme Limited has issued a profit warning, saying it expects to record a loss for the half year ending June 30, 2026, extending a downturn that started in the previous financial year.
In a public notice dated July 31, 2026, the electricity distributor linked the expected loss to the end of its core revenue operations after exiting its long-term concession in Uganda.
As a result, the company now faces a challenging transition period following the conclusion of its primary business.
“The Board of Directors (the “Board”) of Umeme Limited (the “Company”) wishes to inform its shareholders, prospective investors and the general public that, based on an assessment of the Company’s financial performance for the half year ended 30 June 2026, the Company will most likely register a consecutive loss, following the registration of a loss for the financial year ended 31 December 2025,” read part of the notice.
Umeme Limited Concession Exit Drives Revenue Decline
Umeme Limited confirmed that the end of its 20-year electricity distribution concession in Uganda directly triggered the expected loss.
Specifically, the company handed over the electricity distribution system to the Government of Uganda on March 31, 2025, marking the close of its long-standing operations in the country.
“The assessment is based on the fact that the Company ceased to generate revenue following the handover of the electricity distribution system to the Government of Uganda at the natural end of the 20-year electricity distribution concession in Uganda on 31 March 2025,” Umeme Limited stated.
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Company Pursues Claims Against Government
Despite the revenue loss, Umeme continues to push forward with efforts to recover outstanding claims from the Government of Uganda.
At the same time, the company has already initiated a dispute resolution process as outlined in the Privatization Agreements governing the concession.
“The Company continues to actively pursue its outstanding claims against the Government of Uganda through the ongoing dispute resolution process as stipulated in the Privatization Agreements and as notified to the public previously,” the notice added.
Meanwhile, Umeme assured shareholders that it will provide updates as the claims process progresses.
The company also emphasized its commitment to keeping investors and stakeholders informed of any significant developments.
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Interim Results to Provide More Details
Looking ahead, the company plans to release additional details about its financial performance in its upcoming Interim Financial Statements for the six months ending June 30, 2026.
These results will outline the full impact of the concession exit and explain the basis of the projected loss.
In line with regulatory requirements, Umeme issued the notice under Rule 38 (3) (c) (ii) of the Uganda Securities Exchange Listing Rules, 2025, which requires listed firms to disclose material changes that may affect financial performance.
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A photo of Umeme Limited technicians at work. PHOTO/ Umemeltd