AfrElec: KenGen posts $132.7mn profit before tax in FY2020-21

Kenya Electricity Generating Co. (KenGen) posted $132.7mn profit before tax for the year ended June 30, 2021, driven by the firm’s diversification strategy.

Profit before tax rose to $132.7mn, an increase of 7% from $124mn reported for the year to June 2020, and the Nairobi Securities Exchange listed firm has recommended a dividend pay-out amounting to $17.8mn to be distributed to all shareholders.

KenGen managing director Rebecca Miano said the profit growth was achieved on the back of continued revenue growth underpinned by the company’s diversification strategy.

“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 maximisation of shareholder value,” she said in press release.

Revenue increased by 4.06% from $396.9mn in 2020 to $412.9mn. This was mainly attributed to revenues from geothermal and hydro generation and the diversification venture at Tulu Moye in Ethiopia.

“The ongoing geothermal drilling services in Tulu Moye contributed $16mn compared to $3.9mn in the previous year,” said Miano.

There was a growth of 3% in unit sales from 8,237 GWh in 2020 to 8,443 GWh in 2021. The firm benefited from the full year operation of the 172-MW Olkaria V geothermal power plant, whose construction was completed in October 2019, resulting in 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,” said Miano.

In the year ahead, KenGen aims to deliver the Olkaria I Unit 6 geothermal power plant, which will add 83 MW 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 140-MW Olkaria VI geothermal power plant through a public private partnership.

KenGen is the leading electricity generation company in Eastern Africa region with an installed generation capacity market share of more than 60%.

KenGen Plc today has an installed generation capacity of 1,818 MW, of which over 86% is drawn from green sources, namely hydro (826 MW), geothermal (713 MW), solar (253 MW) and wind (26 MW).