Kenya Electricity Generating Company (KenGen) half-year earnings doubled to KSh 8.2 billion in the period that ended on 31st December 2019 compared to KSh4.1 billion posted in a similar period in 2018.
These earnings were largely driven by the completion of its 165 MV Geothermal plant at Olkaria V as well as lucrative deals to drill for geothermal energy in Ethiopia.
Its net revenue increased by 4.8 per cent from KSh 18 billion in 2018 to KSh 18.9 billion during the period under consideration. 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.
Revenue from hydropower 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.
The firm’s finance costs declined from KSh 1.3 billion to KSh 1.1 billion while the pre-tax profit increased from KSh 6 billion to KSh 6.3 billion.
The Board does not recommend an interim dividend for the period ended 31st December 2019. “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 the 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.
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