POWER RECOVERY TO CONTINUE - CEC

By BUSINESS REPORTER POWER demand recovery in Zambia is expected to continue actualising in 2018 and 2019 owing to higher commodity prices and bullish outlook which have positively impacted on the viability of a number of mining projects.

This is according to the Copperbelt Energy Corporation Plc (CEC) company secretary, Julia Chaila.

Ms Chaila said CEC power sales as at June 2018 were at 1,723 gigawatts hours, 3 per cent better than the energy sales for the same period in 2017 at 1,672 gigawatts.

She said this in a statement made available to the Daily Nation.

She said commodity prices have continued to be strong and that more importantly, the outlook for the merchandises in the near-to-medium term was bullish.

“Overall, the improved hydrology at the key power generating sites has been positive to the country’s power availability situation and generally contributed to an improved business environment,” Ms Chaila said.

Ms Chaila said the company as at -une recorded a profit after tax of K246 million compared to K211 million recorded in the same period last year 2017.

Operating costs, she said, had been contained at the same level as the preceding year at K275 million due to the company implementing various cost efficiency initiatives.

Meanwhile, Ms Chaila said CEC remained optimistic on its operations and financial performance for 2018.

“It is anticipated that the business will continue to make prioritized capital expenditure aimed at realising its asset modernisation and expansion strategy.

“This strategy will position the business to continue supplying reliable power to its customers. )ocus will be to efficiently support the expansion projects being driven by specific customers on the Copperbelt and DRC aimed at increasing productivity,” Ms Chaila said.

Ms Chaila said the company’s strategy around regional power trading remained solid and that during the last half of 2018, the business would continue to consolidate.

Ms Chaila said CEC expected to record continued growth from this market segment underpinned by new supply contracts such as the 10-year supply contract entered into with major cobalt and copper clients.