By John Chola

Puma Energy Zambia Plc (LuSE) posted a widening loss after tax of K155.71 million for the year ended 31 December 2025, compared to a loss of K77.1 million in the previous year, as the company faced sharp declines in revenue and sales volumes alongside sustained margin compression.

The results, announced at the company’s 64th Annual General Meeting held on 31 March 2026 in Lusaka, showed revenue fell 28 percent to K10.6 billion, down from K14.8 billion in 2024.

Sales volumes contracted by 19 percent to 450,000 cubic metres, with the decline attributed to product supply challenges in the Retail and Business-to-Business (B2B) segments.

Operating performance also deteriorated sharply, with the company reporting an operating loss of K107 million, compared with an operating profit of K41.8 million the prior year.

“The 2025 fiscal year presented several structural challenges,” said Chairman Jacob J. Sikazwe in his address to shareholders.

Despite the difficult environment, he noted that the Aviation business segment recorded a 12 percent increase in volumes, highlighting the resilience of that part of the portfolio.

General Manager Zwelithini Mlotshwa, who took up his role on 1 July 2025, outlined a series of structural and operational measures implemented during the year to stabilise the business.

Key among them was the accelerated transition of several retail sites from a Company Owned, Company Operated (COCO) model to a Company Owned, Dealer Operated (CODO) framework.

“Following the partial adjustment of the regulated Oil Marketing Company margin, we realigned pricing models for major customers to accurately reflect product costs and strategically rebalanced the portfolio to diversify the customer base,” Mlotshwa said. “Together, these actions reduced concentration of risk and built a more resilient revenue stream.”

Despite the financial headwinds, the company maintained capital expenditure of more than K220 million during the year, directed towards retail network upgrades, aviation infrastructure and targeted B2B asset investments.

In a significant development for corporate reporting in Zambia, Puma Energy Zambia adopted the IFRS S1 and IFRS S2 Sustainability Disclosure Standards in its 2025 annual report, positioning the company among the first listed firms in the country to align with international sustainability disclosure frameworks.

Looking ahead to 2026, Sikazwe struck a cautious tone, noting that conflict in the Middle East has introduced new external risks for Zambian businesses.

“However, I am confident that the strategic changes we have implemented will contribute to improved stability and performance even under these conditions,” he said.

Mlotshwa added that the company’s priorities for the coming year would centre on cost management, strengthening partnerships and maintaining operational discipline to navigate ongoing global supply chain volatility.

Puma Energy Zambia operates 75 retail sites, 39 convenience stores, and has a presence at three airports across the country, along with four terminals and storage capacity of 23,712 square metres.