Kenya Power records massive 30.3% drop in its half year net profit amid rise in debt financing costs

david nganga

February 23, 2018 12:14 PM

The firm also stated that it will not be paying an interim dividend for the period.

National electricity utility firm Kenya Power has announced a 30.3 per cent dip in net profit for the six months ended December 2017 to hit Sh2.93 billion from Sh4.2 billion realised in the previous period.

The State-owned power distributor attributed the decrease in profits to an increase in financing costs amid lethargic power consumption growth in a slowing economy.

Financing costs rose by 43% to Sh 3.2 Billion due to the utilisation of short term facilities.

The firm said that electricity sales grew by 2.3 per cent from 3,805 Gigawatt Hours (GWh) to 3,893 GWh in the period, which in turn saw sales revenue rise by 2.5 per cent to Sh46.93 billion.

Meanwhile, total operating costs went up by 17.4 per cent to Sh59.3 billion, mainly due to higher fuel costs — which doubled to Sh12.3 billion — as drought pushed the country to use more thermal power.

Kenya Power stated that it will not be paying an interim dividend for the period.

The company said it anticipates an increase in power consumption from industrial customers under the discounted night-time tariff plan to grow its revenue in the second half of the financial year.

david nganga