The East African's top Energy generating company, KenGen, half-year earnings have reportedly doubled to Ksh 8.2 billion in the financial period that ended on 31
st December 2019 compared to Ksh 4.1 billion posted in a similar period in 2018. The profits are mainly attributed by the commissioning of the 165MW Geothermal plant at Olkaria V as well as the lucrative deals to drill and explore for geothermal energy in Ethiopia.
The biggest geothermal exploring company across Sub-Saharan Africa also announced that its net revenue had increased by 4.8 percent from KSh 18 billion recorded in 2018 to KSh 18.9 billion recorded in 2019 during the same period. The company announced that its operating expenses had also increased from KSh 4.98 billion to KSh 5.57 billion whereas operating profit rose marginally from KSh 6.2 billion to KSh 6.7 billion as by 31
st December 2019.
A breakdown of the Revenue accrued by KenGen revealed that: revenue from hydro power increased to KSh 4.4 billion, whereas Geothermal, Wind and Thermal contributed Ksh 9.4 billion Ksh. 197 million and Ksh 2 billion respectively bringing total electricity revenue to Ksh 16 billion. In the previous period Hydro power accounted for Ksh 4.4 billion, Geothermal Ksh 8.6 billion, Wind Ksh 249 million(Wind) and Thermal Ksh 1.8 billion bringing the total to KSh 15 billion.
The firm’s was also frugal and tightened its spending as financial costs declined from KSh 1.3 billion to KSh 1.1 billion while the pre-tax profit increased from Ksh 6 billion to Ksh 6.3 billion.
A statement from Ms Rebecca Miano, KenGen's Managing Director infered that the Board would not recommend an interim dividend for the period ended that 31
st December 2019. “The board of directors shall make a recommendation regarding any final dividend for the year ended 31
st December 2019 once the audit for the said period is completed following appointment of the Auditor General,” she stated.
In its outlook, KenGen said it has already completed the 165 MW Olkaria V Geothermal power plant, while work is ongoing at the 83 MW Olkaria 1 Unit 6.
“We have ongoing geothermal drilling and consultancy services projects in Ethiopia and Kenya. These initiatives are expected to have a positive contribution to our future performance,” said Ms Miano.
