NEWS & EVENTS

15 May, 2018

SEC achieves E50m profit growth through austerity systems

… SEC adopted cash-conserving strategy and company-wide austerity measures to remain sustainable during tough year.

The Swaziland Electricity Company’s austerity measures and revised internal controls have contributed to it achieving E144m profit in the 2016-2017 financial year.


General Manager Finance Lawrence Nsibandze (l) and Managing Director Meshack Kunene briefing the media on the Company’s financial performance.
This is E50m increase from the E94million achieved the previous year, according to the company’s Annual report released in May.

Chairman of the Board of Directors S’thofeni Ginindza is quoted in the report sounding a warning that the profit should not be misleading to the public to assume the company achieved this effortlessly. Ginindza disclosed that the company’s liquidity was severely affected during the period under review, which prompted SEC to adopt an unprecedented cash-conserving strategy. He said it was achieved through company-wide austerity measures.

“The company remained profitable for the turbulent year under review with a profit of E144 million compared to the profit of E94 million the previous year. The company’s financial position continues to be strong with assets valued at E3.1 billion, compared to E3.026 billion for the previous year,” he said.

Ginindza also noted that there have been commendable national initiatives to revive economic growth, which were, unfortunately, thwarted by unfavourable global factors and then by the severe drought experienced in the 2016-17 financial period. He described the year under review as a difficult one on many fronts.

“It was an extremely tough year for SEC with potentially devastating headwinds, but we came out of it with minimal damage due to the brilliant counter measures put in place. The damage would have been much greater if the company did not adopt a raft of initiatives to soften the blows we encountered,” he said.

The 2016-17 headwinds originated from multiple sources. The major source was the drought, which swept through the Southern African region over the past two years.

Ginindza also revealed that the company would continue its investments in renewable energy and increase the supply of electricity within the country towards meeting the King’s 2022 vision.

In introducing the annual report, the company states, “It is important to stress that we employ the concept of commercial sustainability in its honest form and as described by the global standard. This is a standard which ensures that commercial success is achieved without doing

harm to the needs of the present and future generations. It is precisely this logic which has propelled us towards pursuing the latest trends in the compilation of this Annual Report.”

This report fulfils one of SEC’s key responsibilities; being accountable to all our stakeholders, namely; the shareholder, customers, employees, business partners and the general public. This is an important principle, which speaks to our long-lived ethos to be a model and transparent corporate citizen.

IN BRIEF ITEM

2015/16

2016/17

Profit

E94m

E144m

Assets

E3.026 billion

E3.1 billion

Customers

160 654

182,562

Revenue

E1.586 billion

E1.786billion

Cost of sales

E1.265 billion

E1.388 billion

Cash

E47 million

E37 million

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Mbabane

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Tel: (00268) 2 409 4000

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