State-owned GDC posts KSh1.4 billion net profit

Geothermal Development Corporation (GDC), a state-owned company that explores and drills steam-power generating sites says its net earnings for 2018 jumped from KSh228 million to KSh1.4 billion propelled by a growing demand for steam power. The company’s revenues grew by 24 percent to hit KSh3.6 billion from KSh2.9 billion earned in 2017. Its major client, Kengen, was behind the high demand for steam power. Additionally, recovery from a one-off charge of KSh991 million written off in 2017 helped boost the firm’s earnings.

GDC’s assets increased from KSh69 billion to KSh77 billion accounting for a 12 percent rise. Development projects in Menengai and Silali enhanced the firm’s financial performance in 2018.

Despite the high revenues earned, the exploration company struggles under KSh1.1 billion tax penalties and high current liabilities which stand at KSh10.2 billion.