State-owned energy producer Kenya Electricity Generating Company (KenGen) has posted a Sh4.7 billion profit in the year ending June 30, 2022.
This is more than double its 2021 profit of Sh1.8 billion.
The soaring profit for the NSE-listed firm is primarily anchored on tax rebates related to capital allowances on commissioning of the 86.3 megawatt Olkaria I Unit 6 geothermal power plant.
Subsequently, KenGen’s income tax expense in the period has fallen to Sh3.2 billion from Sh13.5 billion last year, a 76.3 per cent reduction in the tax charge.
At the same time, KenGen has marked Sh3.3 billion in unrealized forex gains.
KenGen says the improved profitability has been achieved on the backdrop of a depressed operating environment characterized by reduced hydropower output.
“KenGen has strong business fundamentals, posting stable results backed by its growth, innovation and expansion strategy. We are pleased to report growth in net profit despite prolonged drought which has affected hydropower generation during the period under review,” said KenGen Acting Managing Director Abraham Serem.
KenGen operating profit nevertheless narrowed sharply in the period to Sh4.6 billion from Ksh.16.4 billion with operating expenses rising by 26.6 per cent to Sh15.7 billion.
The increased costs have been attributed to increased drilling costs in Ethiopia operations and higher depreciation in the value of property, plant and equipment after revaluation.
During the year, KenGen says it delivered 7,918 kilowatt hours of power from its installed generation capacity of 1904 megawatts (MW) from hydro, geothermal, wind and thermal installations.
KenGen has recommended a first and final dividend of 20 cents per share for a combined shareholder pay out of Sh1.3 billion.
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