Listed power producer, Kengen Plc, has reported net revenue amounting to Kes. 39.82 million for the financial period ended 30th June 2020, which is 11.3% higher than the Kes.35.7 million recorded during the same period in 2019.
KenGen attributed the increase to the reduction in fuel revenue associated with thermal plants, which registered a 58.9% decline due to thermal displacement by geothermal power generation.
The company also recorded a 16.8% increase in the earnings before deductions from Kes 22.5 million to Kes 26.2 million. The growth was propelled by Olkaria V’s completion, which led to a 13.4% increase in electricity and additional revenue for diversification of the business.
The company’s exemplary performance consequently resulted in a growth in the profit before tax by 18.3% from Kes 11.7 million in 2019 to Kes 13.8 million, which resulted to a boost in the profit for the year by 133.1% from Kes 7.9 million to Kes 18.4 million during the period under review.
Operation expenses in the company remained flat despite the increased operations associated with the Olkaria V geothermal power plant growing marginally by 0.8% from kes13.9 million reported in 2019 to Kes 14.1 million during the period ended 30th June 2020.
As a result of the Kenyan shilling depreciation against other major currencies, the company recorded an increase in the net loss by 100.8% from Kes 3.2 million to Kes 6.4 million which consequently led to an increase in the finance cost by 63.1% from Kes 5.1 million to Kes 8.2 million.
|Kengen Share Price Trend rallied on release of financials||28-01-2021||27-01-2021|
|Closing Price [VWAP]||5.12||4.93|
Kengen stated that they were optimistic in the measures being put in place by the government to spur economic growth despite the uncertain conditions brought about by Covid-19.
The company stated that they are looking forward to maintaining their growth and performance momentum driven by their electricity business and revenue diversification.
The board recommended the payment of a first and final dividend for the year of kes 0.30 per ordinary share of kes 2.50, which amounted to Kes 2.0 million.