Kenya Power posts Sh.12 Billion in yearly profit

By TheABFortune

Kenya Power has posted Sh. 12 billion in profit before tax for the year ended June 30, 2016.

The Company’s Managing Director and Chief Executive Officer, Dr Ben Chumo, said that the level of profitability has been achieved as a result of the sustained favourable business environment.

Electricity sales grew by 3.6 per cent from 7,130 million units in the previous year to 7,385 million units in the period under review.

“This, combined with an improved average yield, led to 11.9 per cent increase in sales revenue, from Sh77.8 billion the previous year to Sh88 billion,” said Dr Chumo.

The power purchase cost excluding fuel cost and foreign exchange increased by Sh6.9 billion to Sh51.4 billion due to increase in energy charges resulting from growth in unit purchases.

However, the fuel cost decreased by Sh13 billion to Sh12.7 due to increased reliance on geothermal and hydro sources during the year.

The Company has been undertaking a countrywide network upgrade and expansion during the year, resulting into an 18.3 per cent increment in transmission and distribution expenditure to Sh28.7 billion.

“ The Company has started to realize gains from heavy investments made in the years to grow and sustain business as evidenced by an expanded footprint across the country, improved customer experience and growth in asset base, besides enhanced reliability and quality of power supply,” said Dr Chumo.

As a result of the performance, the directors have recommended that, in addition to the interim dividend of Sh0.20 paid at half year, a full and final dividend of Sh0.30 per ordinary share be paid for the year.