The Board of the power generating firm Kengen has recommended a dividend payout of KSh 1.65billion for its shareholders for the year ended June 30th, 2019.
The Board has recommended a final dividend of KSh 0.25 for the year for every ordinary share of KSh 2.50 which amounts to KSh 1.65 billion for the year.
In 2018, the Company paid its shareholder KSh 2.64 billion in dividends which translated to KSh 0.40 for every ordinary share.
The listed power generator will hold its virtual Annual General Meeting on October 22nd 2020.
If shareholders approve the dividend payout, payments will be made on December 17th 2020 to members who will be on the Company’s register at the close of business on October 22nd, 2020.
To facilitate payment of the dividend, the register will remain closed from 23rd to October 26th, 2020.
According to the audited financial statements for the year ended June 30th 2019, KenGen recorded an increase in revenue from KSh 45.3 Billion to KSh 46 Billion.
The firm’s pre-tax profit declined to KSh 11.65 Billion from KSh 11.75 Billion, while Net earnings also fell marginally from KSh 7.89 Billion to KSh 7.88 Billion.
KenGen’s balance sheet increased from KSh 379.4 Billion to KSh 401.4 Billion while its profitability as measured by the Earnings per Share declined from 40 cents to 25 cents.
“KenGen recognizes that the ongoing COVID-19 Pandemic may have an impact on its business. The short-term impact of COVID-19 on the Company’s performance is likely to be reflected in the 2019/2020 earnings,” said Rebecca Miano.
During the year ended June 2019, the Company’s energy sales grew from 7,989 GWh in 2018 to 8,277 GWh despite the dilution of its market share following new entrants.
The Company’s diversification strategy has been gaining momentum with the incorporation of new business lines, including consultancy and drilling services.
KenGen is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.
It is also progressing with the drilling detergent manufacturing project, development of energy park, operationalization of materials testing laboratory and electronic instruments calibration centre among other business lines.
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