KenGen reports higher profits for the fiscal year ended June 2020, largely attributed to the new 165 MW Olkaria V geothermal power plant and revenues from the geothermal services business. The target for 2021 is now to deliver the 83.3 MW geothermal power plant of unit 6 of Olkaria I.
In its annual report release for the fiscal year ended June 2020, Kenya Electricity Generating Company (KenGen), reported pre-tax profit of Ksh 13.9 billion ($ 125 million) for the fiscal year ended June 2020. This translates to 8.3% growth in profit compared to the previous year when the company reported pre-tax profit of Ksh 11.6 billion.
The increase is mainly attributable to the additional contribution to revenues from the 165 MW Olkaria V geothermal power plant and to proceeds from the ongoing geothermal drilling project in Ethiopia.
“We recorded a 13.4% growth in electricity revenue, mainly due to the full operationalization of the 165 MW Olkaria V geothermal power plant in November 2019, which increased geothermal production by 14% “said Managing Director and CEO, Ms. Rebecca Miano, mentioned.
Accordingly, the Board recommended a first and last dividend for the year of Ksh 0.30 per ordinary share of Ksh 2.50. This will be presented at the next annual general meeting (AGM) of the company for approval. Recently, the company paid a dividend of Kshs 1.65 billion to its shareholders.
At the same time, KenGen’s after-tax profit fell from Ksh 7.88 billion to Ksh 18.4 billion, an increase the company attributes to a Ksh 8.1 billion reduction in the corporate tax rate. companies by 30-25% in line with government relief measures to help businesses weather the COVID-19 crisis. “We appreciate the support provided by the government during this unprecedented time to enable us to continue to provide electricity as an essential service,” said KenGen General Manager and CEO Rebecca Miano.
She further indicated that as the hydrological conditions in the country were favorable with dams registering their full capacity, hydropower production decreased by 2% following limited demand associated with the effects of the COVID-19 pandemic on the electricity consumption.
Ms Miano said 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 power generation.
In the fiscal year ended June 2020, KenGen’s operating expenses amounted to Ksh 14 billion, compared to Ksh 13.9 billion the previous year. “We continue to optimize operating costs by leveraging digital transformation,” added Ms. Miano.
Ms Miano said the company will also continue to implement its business strategy to ensure sustainable energy growth in the country, while leveraging innovation and partnerships for continued growth and diversification of the company.
“In the coming year, we aim to deliver the Olkaria I geothermal power plant in Unit 6, which will add 83.3 MW to the national grid, and continue our diversification strategy focused on advice, operation and maintenance, training and operationalization of materials. electronic instrument testing laboratory and calibration center, ”said the CEO.
Source: company press release