Enterprise News
Kenya Power Records Net Drop of 92% to Ksh 262 Million
Higher costs of financing the business and purchase of more power for the grid, dampened Kenya Power and lightening company’s financial performance last despite the fact that it had earned more revenue from an increase in the customer base.
Net earnings of state utility firm dropped by a significant 92% from KSh3.27 billion in June 2018 to KSh262 million in the last year.
This, according to its financial results for the year ended 30th June, 2019.
The company has attributed the decline in its earnings to increase power purchase costs by KSh18.1 billion to KSh70.9 billion from KSh52.8 billion.
Two power plants were commissioned during the period, with a combined generation capacity of 360 MW.
The firm’s gross profit fell to KSh42.9 billion from KSh47.3 billion while the size of its balance sheet shrunk from KSh332 billion to KSh328 billion during the period under consideration.
Finance costs shot up by 47% from KSh7 billion to KSh10.3 billion. The firm states that this was due to the increased usage of short-term borrowings to cover cash flow shortfalls and unrealized foreign exchange loss.
Growth in electricity sales were recorded as 7,905 GWh to 8,174 GWh by the firm. There was a decline of transmission and distribution from KSh44.5 billion to KSh41 billion.
