The Kenya Electricity Generating Company (KenGen) has announced an outstanding rise (308 percent) in net profit translating to Sh11.5 billion for the financial year ended June 30, 2015 up from the Sh2.8 billion recorded in 2014.
Total revenue grew by 44 percent from Sh18.5 billion to Sh26.6 billion in June with geothermal contributing 46 percent, an increase of 21 percent compared to last year.
The firm attributes the growth in profitability to increased generation from geothermal and wind energy sources and a Sh2.8 billion tax allowance after commissioning of new electricity plants. Geothermal power sales were the company’s top earner at Sh8.3 billion from Sh2.4 billion last year.
“The energy sector witnessed remarkable growth in the year as our mega 280MW Olkaria project was inaugurated, adding impetus to the Government’s 5000MW campaign to expand power generation and access,” said KenGen Managing Director Albert Mugo.
“During the year, electricity generation increased as a result of new geothermal plants which became fully operational in the second half of the year. This has significantly reduced generation from expensive thermal plants and over reliance on hydro generation plants which are vulnerable to unfavourable weather conditions,” said KenGen’s managing director Albert Mugo in a statement.
During the trading period, the value of KenGen’s assets also increased from Sh250 billion to Sh342.5 billion.
During the period under review, KenGen’s revenue from electricity sales increased from Sh17.4 billion to Sh25.6 billion while finance costs increased to Sh3 billion up from Sh2.5 billion incurred last year following additional borrowing to finance construction of new power plants.
Following the commissioning of the 280Megawatts (MW) Geothermal project and wellheads in Olkaria and the Ngong wind project.
SHAREHOLDERS PIECE OF THE CAKE
The company has declared a dividend of Sh0.65 per share up from Sh0.40 that was paid out last year, pending shareholders’ approval.
“The board is recommending for approval by shareholders a final dividend of 65 cents per ordinary share of Sh2.50 par value,” Mugo said.
KenGen now plans to focus on the implementation of 511MW geothermal projects comprising the 70MW Olkaria 1 Unit 6, 140MW each for Olkaria V and VI, 75MW Wellheads and refurbishment of the old Olkaria 1 from 45MW to 50.7MW that it plans to develop in the next two to four years.