Listed utility company Kenya Power & Lighting Company Plc (KPLC) net earnings for the financial year ending June 30 is projected to decline further compared to its previous years’ performance attributable to slow growth in electricity sales and operational costs.
Its previous full-year performance posted a 92 percent plunge in net profit to KSh262 million.
“The Covid-19 pandemic has adversely affected our business operations leading to slow growth in electricity sales and an increase in financing cost resulting in reduced earnings,” said the firm in a cautionary notice on Tuesday.
Its profit for six months to December 2019 declined 71.8 percent to KSh693 million. Revenue during the six months was up six percent to KSh73.4 billion.
Operating costs rose by 12.4 percent (KSh7.56 billion).
The management, however, said it remains focused on enhancing the Company’s financial performance through improving operational efficiency, growing sales, reducing system losses, and managing costs.