Olkaria output lifts KenGen half-year profit by 484pc

Kenya’s main electricity producer KenGen has seen its first-half after-tax profit rise nearly fivefold on the back of increased capacity.

Unaudited results for the six months ended December 31, 2014 show profit after tax grew by a staggering 484 per cent to Sh4.93 billion from Sh1.02 billion over a similar period a year earlier.

"We achieved significant growth in capacity expansion, revenue and profitability following the completion of our Vision 2030 flagship project, the 280MW Olkaria plants," KenGen said in a statement sent to the Nairobi Securities Exchange.

Performance was further enhanced by installation of additional 35.6MW of Wellheads, 20.4MW Ngong wind and completion of works on Olkaria II power plant which had been undergoing major maintenance, KenGen said.

Electricity revenues grew by a third to Sh11.6 billion from Sh8.4 billion in December 2013. The company increased its capacity following newly commissioned power plants by 344 megawatts.

“Installed capacity rose as a result of increased generation from the newly completed power plants and improvements from plants which were undergoing overhauls during the same period last year,” said the company’s managing director Albert Mugo.

Total revenue rose to Sh12.18 billion from Sh8.92 billion.

KenGen share price has recorded a 12.1 per cent rise at the Nairobi Securities Exchange in the last one month.