Kengen Plc, the leading electric power generation company in Kenya, recorded a decline in total revenue by 3% from Kes 22.36 billion in 31st December 2019 to Kes 21.80 billion for the period ended 31st December 2020.
The decline was attributed to reduced fuel revenue charge following the displacement of thermal generation.
Revenue from geothermal operations continued on a growth trajectory and increased by 14% supported by additional generation capacity from Olkaria V and revenue diversification from the Ethiopia project.
Net Revenue increased by 9% from Kes18.91 billion in December 2019 to Kes 20.56 billion for the period under review, primarily because of Olkaria V and revenue diversification from the Ethiopia project.
Kengen’s net profit for the half-year period that ended on December 31 2020 dropped by 38 % to Kes 5 billion, from Kes 8.17 billion in December 2019
Expenses were maintained at the same level despite the increased operations associated with the Olkaria V geothermal power plant, increasing marginally by 1% from Kes 12.94 billion reported in the previous year to Kes 13.09 billion.
Other income decreased by 62% attributable to the impact of COVID–19 on consultancy, Geothermal SPA, as well as Carbon Credit which brought in Kes 34 million in the last financial year.
Kengen attributed net losses recorded on foreign exchange valuations to the depreciation of the Kenyan Shilling against other major currencies. The net gains decreased from a gain of Kes 246 million to a loss of Kes 382 million
Finance costs incurred in the company increased by 8% from Kes 1.15 billion to Kes 1.2 billion, largely due to a foreign exchange fluctuation attributable to the weakening of the Kenya Shilling against other major currencies.
The company recorded an increase in Profit before tax by 9% from Kes 6.3 billion in December 2019 compared to Kes 6.8 billion in December 2020. The rise was attributed to revenue from Olkaria V 165MW power plant.
Kengen has expressed optimism in the performance of the company saying they are delivering an Olkaria I Additional Unit 6 geothermal power plant, which will add 83.3MW to the national grid by September 2021.
Additionally, they are also targeting to scale up diversification of revenue streams by the exploration of further regional and local opportunities.
The Board of Directors did not recommend an interim dividend for the period.