× Digital News Videos Health & Science Opinion Education Columnists Cartoons Lifestyle Moi Cabinets Arts & Culture Ramadhan Special Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Profits not forthcoming due to Covid-19, warns Kenya Power

BUSINESS NEWS
By Saada Hassan | June 16th 2020

Kenya Power and Lightning Company will not be making major profits this financial year closing in on 30 June.

In a cautionary statement released today, the electricity distributor has warned that due to the coronavirus pandemic, there has been a slow growth in electricity sales.

“The Covid-19 pandemic has adversely affected our business operations leading to slow growth in electricity sales and an increasing in financing costs resulting in reduced earnings,” reads the statement from the board of Kenya Power.

In 2018, Kenya Power saw its profit for the last six months to December plunge to 71 per cent from Sh2.458 billion to Sh693 million.

While in 2019, Kenya Power faced a dip in the year ending June 30, 2019 as earnings dropped by 92.1 percent to Sh262 million in the unaudited trading results.

As the year closed in on December 2019, Kenya Power reported another 72.3 percent drop in profit over a six months period.

The dip in profits was attributable majorly to higher non-fuel power purchasing costs which grew by Sh18.1 billion to Sh70.9 billion in part, from new purchases from the completed Lake Turkana Wind Power (LTWP) project and the 50 megawatt (MW) Garissa solar farm.

Take a quick survey and help us improve our website!

Take a survey

The latest cautionary statement to earnings is similar to a profit warning that was issued in September 2019.

However, the Board is adamant that, they are focused on enhancing the company’s financial performance through improving operational efficiency, growing sales, reducing system losses and managing costs.

The company’s share price has currently dropped at the Nairobi Securities Exchange and now trades at Sh2.37 per share and below its Initial Public Offer (IPO) price of Sh2.50 in 1954.

 

 

 

Covid 19 Time Series

 

Share this story
Border closure hits consumers’ pocket in Western Kenya
Towns in Western Kenya are facing shortage of agricultural products leading to hiked prices
I eagerly await my baby's first steps
Spina Bifida, and though rare in the general population, it is the most common neural tube defect in the world
.
RECOMMENDED NEWS

Feedback