Nairobi, October 27th, 2018: Kenya Electricity Generating Company PLC, (KenGen) has declared a dividend of Ksh 2.6billion for the financial year 2018.
This follows a two per cent increase in pre-tax profit for the 12 months ending June 30th, 2018 to Ksh 11.75 billion, up from Ksh 11.46 billion last year.
Speaking while announcing the full year results, the Managing Director & CEO, Mrs. Rebecca Miano attributed the improved performance to increased net finance income.
The company’s total revenue increased by 4 per cent, up from Ksh 43.4 billion in 2017 to Ksh 45.3 billion. This was driven by a 20 per cent growth in steam revenue, which rose from Ksh 5.2 billion in 2017 to Ksh 6.2 billion in 2018.
KenGen’s revenue, generated from geothermal power plants, increased from Ksh 16.1 billion in 2017 to Ksh 17.1 billion in 2018, which translates to a growth of six percent.
The growth in geothermal power is in line with KenGen’s strategy which focuses on increasing geothermal energy to meet the country’s growing electricity demand and unlock the company’s investment in steam wells.
Profit after tax was Kshs 7.891 billion compared to Kshs 9.006 billion last year.
Mrs Miano said the company’s 2018 overall performance was good, an achievement that had enabled it to provide reliable, safe, quality and competitively priced electricity.
“During the year, our generation dispatch increased by 6 per cent from 7,556 GWh in 2017 to 7,989 GWh for the year ended 30 June 2018,” she said.
The increase, Mrs. Miano observed, was recorded despite a persistent drought which affected water levels within the company’s reservoirs in the first six months of the year. She attributed the good performance to diversification of the energy sources, through which geothermal generation was able to cater for a deficit in hydro generation.
Speaking at the same function, KenGen’s Chairman of Board of Directors, Mr. Joshua Choge said the company’s profitability was higher and the organization was one of the parastalals that had delivered positive results in turbulent economic times.
Dr. Eng. Joseph Njoroge, Principal Secretary Ministry of Energy, congratulated KenGen posting good financial results.
In the last quarter of 2018, KenGen benefitted from high rainfall which contributed to increased inflows into its hydro dams, with Masinga Dam peaking at 1,057.75Meters above sea level, the highest ever in 20 years. “This greatly enhanced our hydro generation and downscaled thermal energy requirement in the second half of the year,” she added.
During the period under review, KenGen did not commission any new electricity generation projects and therefore did not recognise any capital allowances for which tax credits are realised.
Consequently, the company’s profit after tax reduced by 12% from Ksh 9 billion in 2017 to Ksh 7.8 billion in 2018.
Mrs. Miano said the company was committed to maintaining investor confidence in its capital-intensive business. “We remained cash generative at the operating level over the year, despite continued investment in capacity expansion which mainly focused on geothermal. It is this investment that will underpin further rapid growth going forward with an overall objective of a steady return for our shareholders,” she said.
KenGen, which is Kenya’s leading energy producer and was this year voted among the country’s top three best employers, has plans to increase its generation capacity on a continuous basis.
Plans are under way to deliver Olkaria V geothermal project which will add 164.5 MW to the national grid. The first unit of 82MW is scheduled for commissioning in April 2019, while the second one is set for commissioning in July 2019. Also in the pipeline is Olkaria 1 Unit 6 (83MW) geothermal project which has commenced. The balance of the project pipeline drawn from wind, solar and geothermal sources for a total 476 MW are at various stages of preparation for implementation in line with the country’s updated Least Cost Power Development Plan (2017-2037).
KenGen is the leading electricity generation company in Eastern Africa with a market share of about 70 per cent. The company’s primary business is to provide affordable and dependable electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.