Puma Energy Zambia Plc Reports 2024 Financial Performance at 63rd AGM
Puma Energy Zambia Plc, a leading oil marketing company listed on the Lusaka Stock Exchange (LuSE), has announced its audited financial results for the year ended 31 December 2024 during its 63rd Annual General Meeting (AGM) held at Sarovar Hotel in Lusaka.
The company reported a 41.1% increase in revenue, reaching K14.8 billion, up from K10.5 billion in 2023. This growth was driven by a 25.6% rise in sales volumes, which expanded to 558,000 cubic meters from 444,000 cubic meters in the previous year, primarily due to an expanding retail network and growing business-to-business (B2B) segment.
Despite the surge in revenue, operating profit plummeted by 89% to K41.8 million, down from K392.8 million in 2023. The significant decline was attributed to stagnant Energy Regulation Board (ERB) regulated Oil Marketing Company (OMC) margins, rising operating costs, inflation, and currency depreciation. This resulted in a loss after tax of K77.1 million, compared to a profit of K254.8 million in the prior year.
Managing Director Patricio Chababo highlighted the difficulties faced by the company, including escalating product costs and a constrained pricing model. He stated, “Even with considerable revenue growth, the company experienced escalating costs, constrained regulated margins, and the adverse depreciation of the Zambian kwacha, leading to a loss before tax of K114.6 million.”
The company emphasized its ongoing advocacy efforts with the ERB and industry stakeholders to implement a cost-reflective fuel pricing framework that aligns with real market conditions.
In 2024, Puma Energy Zambia invested over K359 million in fuel storage capacity expansion, rural and urban retail network development, and Liquefied Petroleum Gas (LPG) distribution. The company is also exploring hedging strategies to mitigate foreign exchange risks and improve operational efficiency.
Board Chairman Jacob J. Sikazwe emphasized the company’s resilience despite regulatory and economic pressures. He remarked, “Our 25.6% increase in sales volumes and 41.1% revenue growth demonstrate the strength of our strategies in a complex economic landscape.”
Looking ahead, Puma Energy Zambia’s 2025 strategic focus will revolve around regulatory advocacy, currency risk mitigation, and operational excellence. The company remains committed to safety, efficiency, and long-term value creation for shareholders.
