Growing sales push KenGen's net profit to Sh5.7 bn

One of the KenGen’s steam power harvesting wells in Olkaria. PHOTO | BILLY MUTAI
One of the KenGen’s steam power harvesting wells in Olkaria: The firm's net profit has grown 15 per cent on increased sales. PHOTO | FILE 

KenGen’s net profit for the six months to December has grown 15 per cent on increased sales even as higher operating and financing costs weighed down its performance.

The NSE-listed electricity producer has reported that its after-tax earnings for the period stood at Sh5.7 billion, compared to Sh4.92 billion recorded in 2014.

The firm closed the period with revenues of Sh14.8 billion, representing a 27 per cent jump from the Sh11.7 billion recorded the previous year.

This performance would have been more impressive were it not for higher operating costs which went up by about a quarter to Sh8.7 billion while financing costs increased 22 per cent to Sh1.62 billion.

KenGen, which has been investing heavily in power generation plants over the past years, closed the period with assets worth Sh355 billion up from Sh342.5 billion the previous year.

The company, which is owned 70 per cent by the State, closed the six months with current liabilities of Sh21.3 billion, including a Sh6.2 billion provision for dividends payable.

KenGen shareholders in December approved the firm’s Sh28 billion rights issue, paving the way for the firm to seek approvals from the Capital Markets Authority with a view of launching the issue by June.

The cash will primarily be used to boost production capacity.