Kenya Electricity Generating Company (KenGen) has posted a Sh4.7 billion profit after tax for the period ending June 30, 2022.
The profit recorded by KenGen means the firm more than doubled the Sh1.8 billion its posted over the same period last year representing a 157 per cent year-on-year rise.
The power generator has attributed the profit surge to business growth at a time when the firm listed at the NSE commissioned 86MW Olkaria I Unit 6 earning a tax expense reduction.
In the same period, KenGen’s revenue rose by 7.5 per cent from Sh45.7 billion in 2021 to Sh49.2 billion, as it continued reaping from its investments in the geothermal sector.
In the period in review, the firm generated more than 70 per cent of Kenya’s renewable energy from its total fleet of hydro, geothermal, wind, and thermal, with a combined capacity of 1,904MW, which delivered 7,918kWh during the year.
“KenGen has strong business fundamentals, posting stable results backed by its growth, innovation, and expansion strategy,” said KenGen Acting MD and CEO Abraham Serem.
He added: “We are pleased to report growth in profit after tax for the year ended June 30, 2022, despite prolonged drought which has affected hydropower generation during the period under review.”
Serem expressed optimism of a promising year ahead sustained by an expected rise in economic activities.
“From an innovation perspective, we are particularly keen to explore opportunities in the E-mobility space, which we recently delved into by unveiling four electric vehicles which we will use to collect data over the medium term with the view of informing future investment decisions on the same,” went on Serem.
Serem added that KenGen will continue supporting geothermal power development in East Africa and explore new business opportunities consistent with its renewable energy focus.
The company is eyeing the redevelopment of a 45-year-old 45MW Olkaria I geothermal power plant to boost its capacity to more than 50MW and uprate Olkaria I Additional Units 4 & 5 and Olkaria IV.
According to KenGen, the project is seeking to increase the capacity of the two geothermal power stations from the current 280MW to 320MW.