KenGen has announced that its half-year profit before tax went up by 9.5% to Ksh. 6.87 billion for the period ended 31st December 2020.
However, its profit after tax for the period declined 38.2% to Ksh. 5.05 billion from Ksh. 8.17 billion it reported on a similar period the previous year.
This comes after a decision by the company to sell power directly to consumers, late last year. The law, under Section 140 compels Kenya Power to provide non-discriminatory open access to its distribution system for use by any licensee, retailer or eligible consumer. The law also specifies that the lines will remain the property of Kenya Power even after a licensee pays fees to the firm to use the infrastructure.
KenGen’s energy sales increased by 5% following growth in national electricity consumption which saw peak demand reach 1,976MW in December 2020 compared to 1,882MW during a similar period in 2019.
Revenue from geothermal operations continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V. This trajectory was also noted in revenue diversification from an on-going geothermal drilling project in Ethiopia.
“Net revenue increased by 9% from Ksh.18.9 billion in December 2019 to Ksh.20.5 billion for the period under review, primarily because of Olkaria V and revenue diversification from the Ethiopia drilling project,” KenGen Managing Director and CEO, Rebecca Miano said while announcing the financial results.
The MD has seen the company through an upward growth trajectory, consistently reporting good corporate financial performance. This, despite a difficult operating environment with COVID-19 that has affected many businesses globally.