Kenya Power and Lighting Company (KPLC) emerged from a loss-making territory or Net Loss of KSh 939 Million in 2020 to Net Profit of KSh 1.490 Billion for the financial year ended 3oth June 2021, an increase of 16.08%.
According to its audited financial results for the year ended 30th June 2021, the state-owned electricity distributor made a pre-tax profit of KSh 8.2 Billion in 2021 compared to a pre-tax loss of KSh 7.04 Billion in 2020, an increase of KSh 15.2 Billion or 216.42%.
Directors of the utility firm attribute the positive growth to an 8.4% increase in electricity revenue as a result of growth in electricity sales by KSh 9.8 Billion to KSh 125.9Billion.
An increase in electricity revenue was driven mainly by growth in unit sales of 400 GWh from 8171 GWh in 2020 to 8,571 GWh in 2021 owing to an expanded customer base and increased economic activity.
KPLC also recorded a decline in operating costs-which includes transmission, distribution and administration costs- by KSh 7.9 Billion from KSh 47.8Billion in 2020 to KSh 39.9Billion at the end of June 30th, 2021.
KPLC balance sheet size grew to KSh 332.2 Billion in 2021 compared to KSh 325.3 Billion in 2020.
Finance costs reduced from KSh 12.5 Billion in 2020 to KSh 9.1 Billion in 2021 following the partial conversation of overdrafts and continued repayment of commercial loans. In addition, the unrealised forex losses were reduced due to prudent planning of forex transactions.
The firm lowered its operating expenses by 17% from KSh 47.8 Billion in 2020 to KSh 39.9 Billion in 2021 due to lower provisions as a result of enhanced revenue collection and prudent cost management as well as resource optimization initiatives implemented during the year.
In its 2022 outlook, KPLC says it will remain at the forefront of driving the ongoing dialogue on power purchase agreements to make electricity more affordable to customers and boost Kenya’s competitiveness as a business hub.
Directors of the firm have not recommended the payment of any dividends to its shareholders.
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