Kenya Power's net profit for the six months to December jumped over 27 times to Sh3.81 billion from Sh138 million in a similar period a year earlier on the back of higher electricity sales and lower operating costs.
During the six months, the utility's revenue went up 21.09 percent to Sh83.5 billion in the period as operating costs dropped by 5.44 percent or by Sh1 billion to Sh19 billion in the period.
Kenya Power's net profit for the six months to December jumped over 27 times to Sh3.81 billion from Sh138 million in a similar period a year earlier on the back of higher electricity sales and lower operating costs.
During the six months, the utility's revenue went up 21.09 percent to Sh83.5 billion in the period as operating costs dropped by 5.44 percent or by Sh1 billion to Sh19 billion in the period.
“Electricity sales recorded a 366GWh increase to 4,562GWh, an 8.7 percent growth compared to a similar period last year. This was driven by an increase in customer connectivity, as well as improved supply quality and reliability due to enhanced preventive maintenance works, network refurbishment, and accelerated faulty meter replacements,” said the utility firm on Friday.
“Operating costs decreased from Sh20.132 billion to Sh19.036 billion as a result of enhanced cost management and resource optimization initiatives that the Company is implementing as part of its turnaround strategy.”
Power purchase costs, classified as non-fuel costs, went up 6.2 percent to Sh40.4 billion from Sh38.12 billion, to support increased demand, Kenya Power said.
It said fuel costs more than doubled to Sh10.8 billion from Sh4.6 billion on account of higher fuel prices and higher uptake from thermal plants.
“(This was) mainly due to a 314 GWh increase in units purchased from thermal plants to 709 GWh due to low hydrology resulting from delayed rains, and an upsurge in fuel prices,” said Kenya Power.
Kenya Power is eyeing job cuts as part of efforts to run a lean operation and compensate for revenue losses that followed the January cut in electricity prices by up to 15 percent.
The government is also pushing to renegotiate fixed charges in power contracts the monopoly signed with electricity-generating companies downwards.
Kenya Power also wants to reduce its technical and commercial losses to between 10 to 12 percent, by installing advanced metering infrastructure for consumers to improve billing and curb the menace of power theft.
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