Kenya Power has issued a profit warning saying financial results for the period ended June 2018 are expected to be lower by at least 25 per cent compared to a similar period in 2017.
“The warning is based on the unaudited results for the financial year ended 30th June 2018 and the evaluation made by the board, with reference to figures and information currently available.” It said in a statement.
Kenya Power board further blames “constrained by the depressed economic environment, poor hydrological conditions, the prolonged electioneering period and the delayed review of retail electricity tariffs.
The company recently appointed an interim senior management team to run the company pending hearing and conclusion of ongoing corruption allegation cases against previous managers. Eng. Jared Omondi Othieno, previously the acting General Manager for Street Lighting was appointed acting Managing Director & CEO to replace Ken Tarus who was suspended.
During the six month period ended December 2017, the listed firm’s net profits declined massively by 30.2% to Sh 2.9 Billion compared to Sh 4.2 Billion recorded in the same period in the previous year. Profit before tax declined by 19% to Sh 4.6 Billion. The company said the drop was as a result of the economic slowdown and an increase in the financing cost.
Share Price
The company’s share price on Friday’s trading session closed at a record low of Sh 4.45. It has fallen by more than 50 per cent since the start of the year.
