NAIROBI, Kenya March 1-Electricity generating company KenGen reported a Sh5.12billion net profit for the half-year ended December 2021 up from Sh5.05billion reported in the same period in 2020.
The slow growth in profits was attributed to increased expenses with operating costs rising to Sh14.1 billion from Sh13.1 billion.
The increased expenses were owed to increased business activities in Ethiopia, repairs and maintenance, and higher steam costs following increased dispatch from its Olkaria geothermal plants.
Even so, KenGen’s total revenues were up by 14 per cent at Sh24.8 billion from Sh21.8 billion.
“This growth is mainly attributed to higher revenue receipts from drilling consultancy operations outside Kenya,” said KenGen.
Further, finance income rose by 22 per cent to Sh1 billion on increased cash holdings for ongoing projects and loans while the firm’s finance costs declined by 27 per cent to Sh897 million from a reduction in loan balances.
“Our performance for the six months ended December 31 2021 remained stable supported by increased income from revenue diversification initiatives and overall growth in electricity demand,” said KenGen in a statement.
KenGen says it is betting on continued revenue diversification efforts and the upcoming commissioning of the Olkaria I Unit VI geothermal power plant for further growth.
The board of Directors did not recommend an interim dividend.