KenGen Posts 8.3% Growth in Profits at Kes 13.79 Billion for FY2020
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.