The Kenya Electricity Generating Company (KenGen) PLC, East Africa’s largest electricity producer, has reported a 79% growth in profit after tax for the six months ending 31st December 2024.
KenGen posted Ksh 5.3 billion in profits after tax, a jump from Ksh 2.95 billion recorded in the same period in 2023.
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In a statement on Thursday, February 6, KenGen, which is 70% owned by the government, said it achieved a 49.4% increase in operating profit, reaching Ksh.6.65 billion from Ksh.4.45 billion in the previous period.
According to the company, the growth was driven by a reduction in operating expenses, while revenues remained stable.
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“This improvement was fueled by a 13.7% reduction in operating expenses, which fell to Ksh.17.67 billion from Ksh.20.47 billion. Revenues, on the other hand, remained stable at Ksh.27.5 billion,” the statement read.
Operating expenses decreased due to lower plant and maintenance costs.
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KenGen Records Net Profit of Ksh5.3 Billion
In terms of electricity sales, there was a 1.9% increase, rising to 4,291 gigawatt hours in the half-year to December 2024, compared to 4,211 gigawatt hours supplied in the previous period.
However, despite the increase in profits, the company’s overall revenues declined to 3.6%, dropping from Ksh.28.5 billion in 2023 to Ksh.27.5 billion in 2024.
On the other hand, the company’s finance income rose to Ksh.2.45 billion from Ksh.1.87 billion, buoyed by higher returns on cash investments and a more stable Kenyan shilling.
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Meanwhile, finance costs decreased to Ksh.1.13 billion from Ksh.1.49 billion, reflecting improved capital management and debt optimization, according to KenGen.
At the same time, tax expenses increased by 42% in the six months to Ksh.2.7 billion, up from Ksh.1.9 billion in 2023, driven by higher profitability.
Reimbursable fuel and water costs also rose by 9.1%, reaching Ksh.4.1 billion from Ksh.3.8 billion in 2023.
The electricity generator mentioned that the electricity demand grew, and the number of national electricity units generated increased by 5.9% during the period.
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Additionally, KenGen’s earnings per share (EPS) surged by 78% to Ksh.0.80, up from Ksh.0.45, as part of the company’s ability to create shareholder value in a dynamic energy market.
Kenya Electricity Generating Company (KenGen) was inducted into the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index in August 2024.
The MSCI Frontier Markets Small Cap Index serves as a crucial benchmark for institutional investors seeking to gain exposure to emerging economies with high growth potential.
Similarly, in 2024, KenGen emerged as the top firm on the Nairobi Securities Exchange in terms of dividend yield, reflecting strong cash returns relative to its current stock price.
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