Earnings UpdateKenGen Reports a 7% Rise in Pre-Tax Profit to 14.8 Billion in its Full Year 2021

Rebecca Miano, Kengen Plc Managing Director

Kenya Electricity Generating Company PLC (KenGen) has reported a 7%  increase in Profit Before Tax from Kes.13.79 billion to Kes.14.76 billion during the period ended 30th June 2021.

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.” KenGen Managing Director and CEO, Rebecca Miano.

Revenue increased by 4.06% from Kes.44.110 billion in 2020 to Kes.45.901 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 Kes.1.784 billion compared to Kes.440 million in the previous year.

The NSE listed firm reported a 3% growth 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% displacement of thermal generation.

“In 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,” Rebecca Miano.

Kengen Dividend and Outlook

The NSE-listed firm has recommended a dividend pay-out of Kes.0.30 per share which amounts to Kes.1.98 billion to be paid to all its shareholders.

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, its employees, development partners and other stakeholders whose contributions she said enabled the Company to achieve its mandate and record steady business performance.

Read also; KenGen Launches State-of-the-Art Research and Development Centre

 

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