Kenya Power Reports 16% Half Year Profit slump
Kenya Power’s net profit dropped by Ksh470 million to reach Ksh2.46 billion in the half year period that ended in December 2018. This is attributed to rise in total expenses to Ksh65.47 billion from Ksh62.59 billion posted in December 2017.
Transmission and distribution costs rose by 37.3 per cent in H2 2018 to Ksh21.70 billion from Ksh15.81 billion. Kenya power linked the increase in distribution costs to its expanding network. Non-fuel power costs and finance costs increased by 18.8 per cent and 23.5 per cent respectively.
The company’s total revenues rose to Ksh69.4 billion from Ksh67.1 billion earned in 2017. The 3.38 per cent rise in total revenues was mainly driven by electricity sales which were up by 21 per cent to register Ksh56.95 billion in 2018. Electricity sales to domestic users marginally declined while sales to small commercial and industrial users increased in the period under review.
Kenya power’s total assets declined by 3.4 per cent to Ksh338.4 billion during the period under review compared to Ksh350.4 billion registered in 2017. Its long term debt decreased by 13 per cent to Ksh166.6 billion. In contrast, the firm’s short term debt increased by 12 per cent to hit Ksh105.1 billion from Ksh93.6 billion recorded the previous year.
The firm’s acting Managing Director and Chief Executive Eng. Jared Othieno assured investors that the company will continue in its endeavor to, “improve customer satisfaction, enhance efficiency in business operations and grow its revenue.” The company’s board did not recommend an interim dividend for the half year period under review.