KenGen Half Year Earnings Unchanged, No Dividend declared
KenGen registered a decline in net earnings for the half-year period ending December 2018, posting marginal growth of 0.7 per cent. Its PAT for the period was Ksh4.124 billion compared to Ksh4.095 billion earned in the similar period in 2017.
The company’s revenues declined by Ksh138 million to reach Ksh22.185 billion from Ksh22.323 billion registered in December 2017. Its main source of revenue, electricity sales, increased by 3 per cent to Ksh15.04 billion from Ksh14.58 billion earned the previous year. However, income earned from steam revenue and fuel charge dropped by 6.7 per cent and 9.4 per cent respectively.
KenGen attributed the drop in revenue to major maintenance activity at some wellhead units which resulted in low steam revenue. Additionally, improved performance at the hydro-power plants led to low dispatch at thermal plants and hence the 9.4 per cent decline in fuel charges.
The firm’s operating expenses rose by 7 per cent in the period under review mainly caused by power plant operating and maintenance expenses and provision for the impaired Garissa power plant assets following the region’s connection to the national grid.
The unaudited financial report showed a massive increase in cash generated from operating activities from Ksh1.34 billion recorded in 2017 to Ksh24.57 billion recorded in 2018 equivalent to 1,738 per cent increase.
KenGen’s board failed to recommend an interim dividend for the half year period.