KenGen’s full year profit jumps to Sh18.3billion

KenGen CEO Rebecca Miano (PHOTO: Courtesy)

NAIROBI, KENYA: Energy producer KenGen has announced a profit after tax of Sh18.3billion for the year ended June 30, 2020, from Sh7.8 billion recorded similar period in 2019.

The company attributed the growth partly to the temporary Covid-19 tax relief measures from 30 per cent to 25 per cent for corporates.

The company’s profit before tax on the other hand grew by 8.3 per cent to Sh13.9 billion from Sh11.6 billion reported previous financial year.

The increase was mainly attributed to the additional revenue contribution by the 165MW Olkaria V geothermal power plant and proceeds from the ongoing geothermal drilling project in Ethiopia.

“We reported a 13.4 per cent growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14 per cent,” the Managing Director and CEO, Rebecca Miano, said.

The Board recommended a first and final dividend for the year of Sh0.30 per ordinary share of Sh2.50. This will be presented during the company’s upcoming Annual General Meeting (AGM) for approval.

The MD further indicated that in as much as the country’s hydrological conditions were favorable with dams recording full capacity, hydropower production declined by 2 per cent following constrained demand associated with the effects of COVID-19 pandemic on electricity consumption.

Miano stated that in response to the pandemic, KenGen continued to implement business continuity measures to minimize the impact of the pandemic on operations to ensure continued generation of electricity.

During the year ended June 2020, KenGen’s operating expenses were at Sh14 billion compared to Sh13.9 billion in the previous year. “We continue to optimize operating costs by leveraging on digital transformation,” Mrs. Miano added.

Miano said the company would also continue implementing its Corporate Strategy to ensure sustainable power growth in the country, while leveraging on innovation and partnerships for continued business growth and diversification.

“In the year ahead, we aim to deliver Olkaria I Unit 6 geothermal power plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration center,” the CEO said.

Summary of KenGen's full year 2020 Financial results (PHOTO: Standard)