Kenya Electricity Generating Company PLC (KenGen) recorded a profit after tax of 98 per cent from sh4.12 billion to sh8.17 billion for the period ending 30th June 2019.
The company attributed the growth to earnings arising from the completion of 165MW Olkaria V, geothermal project which also resulted in a tax credit of sh1.89 billion, compared to a tax expense of sh1.9 billion in the previous period.
KenGen also released the unaudited results for the half-year ending 31st December 2019 indicating a 4.3 per cent growth in profit before tax.
KenGen’s revenue net of reimbursables increased by 4.8 per cent, from sh18.04 billion to sh18.91 billion for the six months ended December 31st, 2019.
The growth realized during the half year ended December 31st, 2019 was impacted by lower finance costs following the final repayment of the public infrastructure bond. In October 2019, KenGen fully redeemed its sh25 billion Public Infrastructure Bond Offer (PIBO) which was issued in November 2009.
KenGen’s PIBO, which received overwhelming response from investors, remains the only corporate infrastructure bond to be issued and traded on the Nairobi Securities Exchange (NSE).
Speaking following the release of the unaudited results, the company’s Managing Director and CEO, Mrs. Rebecca Miano, said the growth was buoyed up by a 6.4 percent increase in electricity revenue – from sh15.04 billion in 2018 to sh16 billion for the six months period ended December 31st, 2019 –following the completion of the Olkaria V geothermal power plant.
The company, she added, realized a 127 percent growth in other income, from sh211 million in 2018 to sh479 million for the six months ended December 31st, 2019. “We can attribute this growth to the roll-out of our business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia,” she said.
Geothermal energy was the top company earner, bringing in sh9.3 billion, up from sh8.6 billion in the half-year period ending December 31st, 2019. She said the company was continuing with its geothermal energy growth strategy, adding that the construction of Olkaria 1 Unit 6 was on course.
She expects the diversification strategy, primarily on-going geothermal drilling and consultancy contracts in Ethiopia and Kenya to yield more fruits.
Revenue earnings from hydro power during the six months period were sh4.4 billion compared to sh4.39 billion.
The company’s operating profit remained steady, gaining by 1.1 per cent from sh6.6 billion to sh6.7 billion.
In addition, net cash and cash equivalent was sh8.76 billion compared to sh5.23 billion due to a lower disbursement from borrowings of sh1.9 billion following the completion of Olkaria V and the payment of dividends of sh1.85 billion.