Enterprise News
Kengen Doubles Half-Year Earnings to KSh 8.1 Billion
In the period that ended on 31st December 2019, half year earnings for the Kenya Power Generating Company (KenGen) has doubled to KSh 8.2 billion compared to KSh4.1 billion posted in a similar period in 2018.
The Company’s 165 MV Geothermal plant at Olkaria as well as lucrative deals to drill for geothermal energy in Ethiopia promoted the achievement of these profits During the period under consideration, there was a 4.8 percent increase in its net revenue increased from KSh 18 billion in 2018 to KSh 18.9 billion.
Revenue from hydro power increased to KSh 4.4 billion, KSh 9.4 billion from Geothermal, KSh197 million from Wind and KSh 2 billion from Thermal Energy, bringing total electricity revenue to KSh 16 billion. This is compared to KSh 4.4 billion (Hydro), KSh 8.6 billion (Geothermal), KSh 249 million (Wind) and KSh 1.8 billion (Thermal) of a total of KSh 15 billion in the previous period.
Operating expenses increased from KSh 4.98 billion to KSh 5.57 billion while operating profit rose marginally from KSh 6.2 billion to KSh 6.7 billion at the end of the six months ended 31st December 2019.
The firm’s pre-tax profit increased from KSh 6 billion to KSh 6.3 billio while the finance costs declined from KSh 1.3 billion to KSh 1.1 billion.
Interim dividend for the period ended 31st December 2019 is not recommended by the Board “The board of directors shall make a recommendation regarding any final dividend for the year ended 31st December 2019 once the audit for the said period is completed following appointment of the Auditor General,” said Mrs Rebecca Miano, Kengen’s CEO.
In its outlook, KenGen said it has already completed the 165 MW Olkaria V Geothermal power plant, while work is ongoing at the 83 MW Olkaria 1 Unit 6.
“We have ongoing geothermal drilling and consultancy services projects in Ethiopia and Kenya. These initiatives are expected to have a positive contribution to our future performance,” said Mrs Miano.
