The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.
The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.
Electricity sales, which accounts for more than 70 per cent of the company’s revenue fell slightly from Ksh 14.76 Billion to Ksh 14.68 Billion. Stream revenue declined by a huge margin to Ksh 2.47 Billion compared to Ksh 4.13 Billion posted in the same period in 2015.
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“The results for the period were impacted by the decommissioning of Garissa, Lamu and Embakasi Gas turbine thermal power plants and non-receipt of revenue from commercial drilling activities. Consequently, Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreased to Ksh 12.1 Billion. Profit Before Tax decreased to Ksh 6.57 Billion while Profit After Tax dropped to Ksh 4.6 billion.” KenGen said in a statement.
No Interim Dividends Recommended.
