Kenya Electricity Generating Company PLC (KenGen) has reported a seven percent profit before tax increase from Ksh13.79 billion to Ksh14.76 billion for the year ending June 30, 2021.
The NSE-listed firm has recommended a dividend pay-out Ksh0.30 per share which amounts to Ksh1.98 billion to be paid to all its shareholders.
Announcing the results, KenGen Managing Director and CEO, Rebecca Miano said the profit growth was achieved on the back of continued revenue growth underpinned by the company’s diversification strategy.
“In spite of the challenging times, KenGen remained strong recording a steady performance and demonstrating sound financial position which reaffirms the company’s promise and commitment to continual business growth and maximization of shareholder value,” Mrs Miano said.
Revenue increased by 4.06 percent from Ksh44.110 billion in 2020 to Ksh45.901 billion. This was mainly attributed to revenues from geothermal, hydro generation and the diversification venture at Tulu Moye in Ethiopia. The ongoing geothermal drilling services in Tulu Moye contributed Ksh1.784 billion compared to Ksh440 million in the previous year.
Overall, there was a growth of three percent in unit sales from 8,237GWh in 2020 to 8,443GWh in 2021. The Company benefited from a full year operation of the 172MW Olkaria V geothermal power plant whose construction was completed in October 2019, resulting in a 12 percent displacement of thermal generation.
“In the year 2021, we were blessed with favourable hydrology. In line with KenGen’s affordability agenda to lower the cost of electricity to the consumers, we prudently prioritised dispatch of competitively priced hydro generation,” Mrs Miano added.
In the year ahead, KenGen aims to deliver Olkaria I Unit 6 geothermal power plant, which will add 83MW to the national grid by end of December 2021. At the same time, the company aims to progress the milestones towards the commencement of the 140MW Olkaria VI geothermal power plant through a Public Private Partnership.
Mrs Miano thanked the Government of Kenya, the close to 200,000 shareholders, KenGen employees, development partners and other stakeholders whose contributions she said enabled the Company to achieve its mandate and record a steady business performance.