Nairobi, Wednesday 2nd June 2021: Kenya Electricity Generating Company PLC (KenGen) has started drilling the first geothermal well for Ethiopia Electric Power (EEP) company, setting in motion Phase II of Ksh.7.6 billion contract.
The company has so far drilled 29 metres against a possible maximum of 3,000 metres, further entrenching KenGen’s foothold in the Horn of Africa as a leader in geothermal energy production.
KenGen Managing Director and CEO, Mrs. Rebecca Miano said: “The exercise started on Saturday, May 29, 2021, whereby the first hole section was drilled to 29 meters within eight hours. So far, drilling operations are running smoothly as the team moves to the next hole section. Drilling a single well takes about two months to complete. We however hope to shorten this period despite the prevailing circumstances brought about by Coronavirus Disease (COVID-19).”
Mrs. Miano said KenGen would within the next three weeks mobilize specialized drilling services crew including aerated drillers, directional drillers, and reservoir engineers to ensure the project was a success.
She said KenGen was keen on offering expert services in electricity generation, geothermal development consulting, power plant operation and maintenance and other related services across Africa.
Speaking during the official signing ceremony, former EEP CEO, Dr. Abraham Belay said they were optimistic KenGen would be able to drill the projected number of wells.
“What is more exciting is the fact that KenGen is also building the capacity of our people and eventually, we will also be able to manage geothermal equipment and run the power plants after the company exits the sites,” Dr. Belay added.
He revealed that Ethiopia’s quest for geothermal energy spans over four decades as the country had tried to venture into geothermal development as far back as 1981. With KenGen’s entry into the country, Ethiopia is now staring at a geothermal generation breakthrough.
This move by KenGen to commence Phase II of the project follows completion of Phase I of the contract by the consortium partners under which two rigs were delivered at Aluto site in Ethiopia. The First Phase entailed purchase of drilling rigs while Phase II entails provision of drilling services. KenGen is supplying about 30 percent of the component of Phase II which translates to about USD 6.2 million (about Ksh.620 million).
Under this project, which is financed by the World Bank through a loan to the Ethiopian Government, a total of eight (8) wells will be drilled in Lot 1 using two rigs with an expected revenue of Ksh.620 million (USD 6.2 million). Each rig is expected to drill four (4) wells within a period of one (1) year. Depending on the outcome of Lot 1 wells, an additional 12 wells may be drilled under Lot 2 bringing the total to 20 wells.
In February 2019, KenGen won a joint contract with Shandong Kerui Petroleum Equipment Company and Shandong Kerui Oilfield Service Group to supply geothermal drilling services. The project is being managed between the three consortium members.
At the same time, also in the Horn of Africa, KenGen has completed drilling the first two wells for Tulu Moye Geothermal Operations PLC (TMGO) in Ethiopia and is currently preparing to drill the third well.
In October 2019, KenGen signed a contract with Tulu Moye to drill 12 geothermal wells and also supply, install, operationalise, and maintain water supply system for the project. These two projects are hinged on the company’s diversification strategy which has led to the organization’s expansion in the horn of Africa. Besides Ethiopia, KenGen has also secured a Ksh.709 million contract to offer commercial drilling services in Djibouti.
In February this year, the company signed the contract with Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG). KenGen is also prospecting for similar business in Rwanda.
The company is leveraging on its expertise, in-depth knowledge of the African Rift Valley and close to four decades of successful drilling experience. It has embarked on a geothermal-led growth strategy, further boosting the green energy agenda in Kenya and beyond.
Kenya is Africa’s number one geothermal energy producer and among top 10 in the world. The country has an estimated potential of 10,000MW along the Rift Valley. Currently, this potential is being harnessed in Olkaria, Menegai and Eburru fields.
Nairobi, April 22nd, 2021: Kenya Electricity Generating Company PLC (KenGen) will pay its shareholders Kshs.1.98 Billion in dividends.
This follows today’s approval by shareholders of the Board’s recommendation for a first and final dividend payment of Kshs 0.30 per ordinary share of Kshs 2.50.
The dividend payout for the year ended June 2020 is an increase from the Kshs 1.65 billion paid to the shareholders in 2019.
Speaking during the Company’s 68th Annual General Meeting (AGM) which was held virtually owing to the Coronavirus Disease (COVID-19), KenGen Managing Director & CEO, Mrs. Rebecca Miano, said the Company’s capacity expansion and diversification agenda had contributed to the results and growth achieved during the year the year. “The progress we have been able to make as an institution has mainly been driven by deliberate strategic decisions taking into account the prevailing operating environment, business sustainability, trends and market needs,” she said.
She pointed out that under the Corporate strategy, KenGen had been able to expand its revenue sources and international footprint. “It is under this strategy that we now have on-going contracts to drill geothermal wells in Ethiopia and Djibouti and also provide geothermal consultancy services in Kenya. We are happy this direction we have taken is paying off and are determined to continue with it so that we can provide more value to you, our shareholders,” said Mrs. Miano.
She also highlighted the achievements attained during the period, adding that the company envisioned to add another 83.3 MW to the national grid by the end of 2021 following the completion of Olkaria 1 Unit 6 geothermal power plant.The Managing Director added that going forward, the company would focus on delivering ongoing projects and pursuing new ones in Kenya and beyond.
During the year ended June 2020, KenGen announced a Kshs.13.9 Billion profit before tax which translated into 18% growth from the previous financial year during which the company announced Kshs 11.6 billion profit before tax.
The company’s profit after tax improved from Ksh.7.88 billion to Kshs.18.4 billion, an increase that the company attributed to a Kshs 8.1 billion reduction in corporate tax rate from 30% to 25% as per the Government’s relief measures to support companies navigate through the COVID-19 crisis.
In his address, KenGen Board Chairman, General (Rtd.) Samson Mwathethe said the company was pleased to have delivered positive results amidst a challenging business environment.
The company, he added, would continue implementing its Corporate Strategy to ensure sustainable electricity supply in the country, while leveraging on innovation and partnerships for business growth and diversification.
Nairobi, Friday, February 26, 2021: Kenya Electricity Generating Company PLC (KenGen) has announced a 9% profit increase in its half-year unaudited financial results for the period ended December 31, 2020. The profit before tax grew from Ksh.6.2 billion to Ksh.6.8 billion.
Revenue from geothermal operations continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V and revenue diversification from an on-going geothermal drilling project in Ethiopia.
“Net revenue increased by 9% from Ksh.18.9 billion in December 2019 to Ksh.20.5 billion for the period under review, primarily because of Olkaria V and revenue diversification from the Ethiopia drilling project,” KenGen Managing Director and CEO, Rebecca Miano said while announcing the results.
KenGen’s energy sales increased by 5% following growth in national electricity consumption which saw peak demand reach 1,976MW in December 2020 compared to 1,882MW during a similar period in 2019.
The NSE-listed company has adopted a diversification strategy which has seen it leverage its expertise in geothermal energy by offering commercial drilling services, geothermal development consulting, and other energy-related services locally and in the Horn of Africa.
Mrs. Miano said the company aims to deliver a new geothermal power plant, Olkaria I Additional Unit 6 later this year which will add about 83MW to the national grid.
KenGen PLC is the leading electricity generation company in Eastern Africa, generating more than 72% of electricity consumed in Kenya. The company’s primary business is to provide affordable and reliable electric energy for the country in an environmentally friendly and sustainable manner while creating value for its stakeholders.
NAIROBI, Thursday February 11th, 2021 : Kenya Electricity Generating Company (KenGen) PLC has won yet another international contract to drill three geothermal wells in Djibouti.
The company today signed a Ksh 709,822, 630 (USD 6,452,933) contract with Office Djiboutien De Development De lenergie Geothermique (Djiboutian Office of Geothermal Energy Development) (ODDEG).
The ceremony, in Galla Le Koma, Djibouti, was attended by Kenya’s Energy Cabinet Secretary, Hon. Charles Keter, and KenGen Managing Director & CEO, Mrs. Rebecca Miano.
Speaking during the event, Hon. Keter pointed out that African nations shared the common aspiration of delivering electricity to their people, which, he said, provided an opportunity to work together to meet the continent’s energy needs. “The biggest challenge has remained access (to electricity) in remote areas, and in Sub-Saharan Africa with 573 million people not having access to this important commodity. Although energy access policies have continued to bear fruit, with 2019 data showing tremendous progress, we have seen the Coronavirus pandemic reverse the gains. We can only remain optimistic that things will change in 2021,” the CS said.
While highlighting Kenya’s progress in achieving universal electricity access, he indicated that the country’s National Electrification Strategy (KNES) launched in 2018 had played an important role in helping the nation achieve electrification in an economically viable manner.
In 2019, Kenya’s power installed capacity was 2,818.9 MW. Currently, the country’s energy mix comprises geothermal (29%), hydro (29%), wind (12%), solar and others (2%) and thermal (28%).
The CS said the country had made remarkable progress in increasing access to electric power as a result of deliberate government efforts and private sector investment.
Kenya’s journey towards harnessing geothermal energy, he added, started in the 1950s and assured Djibouti of support in enabling it to realise its geothermal potential. “To date, we have drilled more than 300 wells within the Olkaria field, which is the bedrock of Kenya’s geothermal energy production. As a country, we have a geothermal energy potential of 10,000MW along the Rift Valley with the resource being harnessed in 23 sites,” he said.
For her part, Mrs. Miano expressed optimism that the three wells will be productive and enhance Djibouti’s efforts towards growing its energy production.
KenGen, which has embarked on a diversification strategy, leverages its expertise in geothermal energy by offering commercial drilling services, geothermal consulting and other energy-related services across Africa. Mrs. Miano said the company’s strategic plan is to harness opportunities geared towards driving growth beyond Kenya. “It is therefore our desire that in the next couple of years, we shall have considerable presence in countries within the Continent. It is also worth noting that we are not only keen on increasing our presence in Africa, but also enhancing energy capacities across the region,” she said.
This is the third geothermal drilling contract that KenGen has won in Africa. In October 2019, the company secured a Ksh 5.8 billion contract to drill 12 geothermal wells in Ethiopia. The contract with an independent power producer includes installing a water supply system and equipment.
In February 2019, KenGen won yet another contract for consultancy services and drilling geothermal wells. The contract is worth USD 76,801,344 (about Kshs 7.6 billion). It has also developed partnerships with countries such as Ethiopia and Rwanda in renewable energy development.
KenGen has invested in experts with considerable experience in geothermal exploration and drilling and will build the capacities of teams from Djibouti who will be working on the project.
Kenya is Africa’s number one geothermal energy producer and among the top 10 in the world. KenGen has a geothermal installed capacity of 706 MW and is the leading geothermal power producer on the continent.
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.
Nairobi, Tuesday February 9th, 2021: Leading power producer, Kenya Electricity Generating Company PLC (KenGen) has today paid the National Government Ksh 1,153,856,022 in dividends for the financial year ended June 2019.
The National Treasury & Planning Cabinet Secretary, Amb. Ukur Yatani, received the cheque from KenGen Board Chairman, General (Rtd.) Samson Mwathethe. Also present during the cheque presentation ceremony held at the National Treasury was KenGen Managing Director & CEO, Mrs. Rebecca Miano.
The National Treasury CS lauded KenGen’s positive financial performance adding that as Government, they were proud to be associated with the company. The Government owns 70% stake at KenGen while 30% is owned by private shareholders.
CS Yatani noted that as the country’s leading energy producer, KenGen was a major player in the Government’s efforts towards the country’s growth and development. “ Energy is critical for the country’s growth and development. We take cognizance of the important role played by KenGen in growing the economy,” the CS said.
During the event, Gen. Mwathethe said: “We are indeed privileged and honoured to pay the Government Ksh 1,153,856,022 in dividend at a time when businesses are facing enormous challenges occasioned by the Coronavirus Disease (COVID-19) pandemic.”
He expressed gratitude to the Government for consistent support over the years, saying it had contributed to KenGen’s growth and positive performance.
For the year ended June 2020, KenGen announced a Ksh 13.9 billion profit before tax, translating into 8.3% growth in profit from the previous financial year.
The Board has recommended a first and final dividend for the year of Ksh 0.30 per ordinary share of Ksh 2.50, which will be paid to shareholders once ratified in the next annual general meeting (AGM), Gen. Mwathethe said.
Speaking at the event, the company’s Mrs. Miano said KenGen’s diversification strategy was bearing fruit as the organization had been able to incorporate new business lines in its revenue streams including consultancy services.
The company is currently offering geothermal drilling services and undertaking geoscientific studies in Kenya and Ethiopia.
She also expressed optimism in the company’s ability to navigate the COVID-19 Pandemic which led to widespread socio-economic challenges.
Nairobi, Wednesday January 27th, 2021: The Leading energy producer, KenGen, has announced a Ksh.13.9 Billion profit before tax for the Financial year ended June 2020. This translates to 8.3% growth in profit from the previous financial year where the company announced Ksh 11.6 Billion profit before tax.
The increase was mainly attributed to the additional revenue contribution by the 165MW Olkaria V geothermal power plant and proceeds from the ongoing geothermal drilling project in Ethiopia.
“We reported a 13.4% growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14%,” the Managing Director & CEO, Mrs. Rebecca Miano, said.
Consequently, the Board has recommended a first and final dividend for the year of Ksh.0.30 per ordinary share of Ksh.2.50. This will be presented during the company’s upcoming Annual General Meeting (AGM) for approval. Recently, the company made a dividend payout of Kshs 1.65 billion to its shareholders.
At the same time, KenGen’s profit after tax improved from Ksh.7.88 billion to Ksh.18.4 billion, an increase that the company attributes to a Kshs 8.1 billion reduction in corporate tax rate from 30% to 25% as per the Government’s relief measures to support companies navigate through the COVID-19 crisis. “We appreciate the support provided by the Government during this unprecedented time to enable us to continue providing electricity as an essential service,” said KenGen’s Managing Director and CEO, Mrs. Rebecca Miano.
She further indicated that in as much as the country’s hydrological conditions were favorable with dams recording full capacity, hydropower production declined by 2% following constrained demand associated with the effects of COVID-19 pandemic on electricity consumption.
Mrs. Miano stated that in response to the pandemic, KenGen continued to implement business continuity measures to minimize the impact of the pandemic on operations to ensure continued generation of electricity.
During the year ended June 2020, KenGen’s operating expenses were at Ksh.14 billion compared to Ksh.13.9 billion in the previous year. “We continue to optimize operating costs by leveraging on digital transformation,” Mrs. Miano added.
Mrs. Miano said the company would also continue implementing its Corporate Strategy to ensure sustainable power growth in the country, while leveraging on innovation and partnerships for continued business growth and diversification.
“In the year ahead, we aim to deliver Olkaria I Unit 6 geothermal power plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration center,” the CEO said.
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