GDC raises net profit to Sh1.4b

Energy Principal Secretary Joseph Njoroge (left), Geothermal Development Company Board Chairman Gershon Bw’Omonwa (right) and Johnson Ole Nchoe at the release of the firm's financial results in Nairobi. [Photo, Courtesy]

Increased sales in steam have propelled the Geothermal Development Company’s (GDC) net profit to Sh1.4 billion for the full-year ended in June 2018.

This was up from Sh228 million made in the same period in 2017.

According to its latest annual report released last Friday, the company said increased demand for the steam was largely driven by Keya Electricity Generating Company (KenGen) and a one-off charge of Sh991 million relating to the write-off of unproductive and abandoned wells.

“Revenue increased to Sh3.6 billion from Sh2.9 billion mainly driven by higher demand of steam by KenGen than in the prior year,” said GDC in the report.

The firm’s directors have, however, not recommend the payment of a dividend.

GDC Chief Executive Johnson Ole Nchoe speaking at an investor briefing in Nairobi said the company’s asset base grew by 12 per cent from Sh69 billion in June 2017 to Sh77 billion recorded in the previous year. He said the development of Phase I and II of the Menengai field and infrastructure works for Baringo-Silali Project helped boost revenues.

Mr Nchoe said the firm at the same time surpassed its target for providing Youth, Women and disabled persons with access to State tenders. This was under the Access to Government Procurement Opportunities programme as well as and the ‘Buy Kenya, Build Kenya’ initiative that aims at promoting local content.