Kenya Electricity Generating Company PLC (KenGen) has reported a Ksh. 8.17 Billion profit after tax for the half year ended 31st December 2019.
The rise in profitability was attributed to capital allowances arising from the completion of 165MW Olkaria V, geothermal project which also resulted in a tax credit of Ksh 1.89 billion, compared to a tax expense of Ksh 1.9 billion in the previous period. Growth was also impacted by was impacted by lower finance costs following the final repayment of the public infrastructure bond. In October 2019, KenGen fully redeemed its Ksh 25 billion Public Infrastructure Bond Offer (PIBO) which was issued in November 2009. Other income also grew by 127% from Ksh. 211 Million in 2018 to Ksh. 479 Million, this was attributed to their diversification strategy which saw the company clinch two drilling contracts in Ethiopia.
Geothermal energy was the top company earner, bringing in Ksh 9.3 billion. Revenue earnings from hydro power during the six months period were Ksh 4.4 billion compared to Ksh 4.39 billion in the previous period.
The company’s operating profit remained steady, gaining by 1.1 per cent from Ksh 6.6 billion to Ksh 6.7 billion. Net cash and cash equivalent was Ksh 8.76 billion compared to Ksh 5.23 billion during the previous period due to a lower disbursement from borrowings of Ksh 1.9 billion following the completion of Olkaria V and the payment of dividends of Ksh 1.85 billion.
Managing Director and CEO, Mrs. Rebecca Miano, noted that, the company was continuing with its geothermal energy growth strategy with the construction of Olkaria 1 Unit 6 being on course. She continued to say, “We have already started implementing our diversification strategy and have on-going geothermal drilling and consultancy contracts in Ethiopia and Kenya. These initiatives are expected to have a positive contribution to our future performance and the attainment of our Good-to-Great strategy which focuses primarily on business sustainability.