Kenya Electricity Generating Company PLC (KenGen) has reported a 7% Profit before Tax increase from Ksh 13.79 billion to Ksh 14.76 billion in its full year Financial Results for the financial year ended 30th June 2021.
Additionally, the NSE-listed firm has recommended a dividend pay-out Ksh 0.30 per share which amounts to Ksh 1.98 billion to be paid to all its shareholders.
KenGen Managing Director and CEO, Rebecca Miano said the profit growth was achieved on the back of continued revenue growth underpinned by the company’s diversification strategy.
Mrs. Miano said, “In spite of the challenging times, KenGen remained strong recording a steady performance and demonstrating sound financial position which reaffirms the company’s promise and commitment to continual business growth and maximization of shareholder value.”
“Revenue increased by 4.06% from Ksh.44.110 billion in 2020 to Ksh.45.901 billion. This was mainly attributed to revenues from geothermal, hydro generation and the diversification venture at Tulu Moye in Ethiopia. The ongoing geothermal drilling services in Tulu Moye contributed Ksh.1.784 billion compared to Ksh.440 million in the previous year,” said the KenGen MD and CEO.
Overall, there was a growth of 3% in unit sales from 8,237GWh in 2020 to 8,443GWh in 2021. The Company benefited from a full year operation of the 172MW Olkaria V geothermal power plant whose construction was completed in October 2019, resulting in a 12% displacement of thermal generation.
“In year 2021, we were blessed with favourable hydrology. In line with KenGen’s affordability agenda to lower the cost of electricity to the consumers, we prudently prioritised dispatch of competitively priced hydro generation,” Mrs. Miano added.
In the year ahead, KenGen aims to deliver Olkaria I Unit 6 geothermal power plant, which will add 83MW to the national grid by end of December 2021. At the same time, the company aims to progress the milestones towards the commencement of the 140MW Olkaria VI geothermal power plant through a Public Private Partnership.
Mrs. Miano thanked the Government of Kenya, the close to 200,000 shareholders, KenGen employees, development partners and other stakeholders whose contributions she said enabled the Company to achieve its mandate and record a steady business performance.