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By Steve Umidha
Kenya Electricity Generating Company PLC (KenGen) has announced a profit jump of Ksh 8.17 billion for the half-year ended 31st December 2019 and full year ended 30th June 2019, a 98 per cent jump from Ksh 4.12 billion the company registered during a similar period last year.
The growth is attributed to capital allowances arising from the completion of 165MW Olkaria V, geothermal project which also resulted in a tax credit of Ksh 1.89 billion, compared to a tax expense of Ksh 1.9 billion in the previous period.
KenGen’s revenue net of reimbursables increased by 4.8 per cent, from Ksh 18.04 billion to Ksh 18.91 billion for the six months ended December 31st, 2019.
The growth realized during the half year ended December 31st, 2019 was impacted by lower finance costs following the final repayment of the public infrastructure bond. In October 2019, KenGen fully redeemed its Ksh 25 billion Public Infrastructure Bond Offer (PIBO) which was issued in November 2009.
KenGen’s PIBO, which received overwhelming response from investors, remains the only corporate infrastructure bond to be issued and traded on the Nairobi Securities Exchange (NSE).
Speaking following the release of the unaudited results, the company’s Managing Director and CEO, Rebecca Miano, said the growth was buoyed up by a 6.4 percent increase in electricity revenue – from Ksh 15.04 billion in 2018 to Ksh 16 billion for the six months period ended December 31st, 2019 – following the completion of the Olkaria V geothermal power plant.
The company realized a 127 percent growth in other income, from Ksh 211 million in 2018 to Ksh 479 million for the six months ended December 31st, 2019.
Geothermal energy was the top company earner, contributing Ksh 9.3 billion, up from Ksh 8.6 billion in the half-year period ending December 31st, 2019 The MD said the company was continuing with its geothermal energy growth strategy, adding that the construction of Olkaria 1 Unit 6 was on course. Revenue earnings from hydro power during the six months period were Ksh 4.4 billion compared to Ksh 4.39 billion.