KenGen, Kenya’s biggest electricity producer, has decided to pay a final dividend of Ksh 0.25 per share to its shareholders after the auditing of its FY19 results.
The Board recommended a final dividend of KSh 0.25 for the year for every ordinary share of KSh 2.50 which amounts to KSh 1.65 billion for the year.
According to the audited financial results, KenGen recorded an increase in revenue from KSh 45.3 Billion to KSh 46 Billion.
Its pre-tax profit declined to KSh 11.65 Billion from KSh 11.75 Billion, while Net earnings also fell marginally from KSh 7.89 Billion to KSh 7.88 Billion.
KenGen’s balance sheet increased from KSh 379.4 Billion to KSh 401.4 Billion while its profitability as measured by the Earnings per Share declined from 40 cents to 25 cents.
“KenGen recognizes that the ongoing COVID-19 Pandemic may have an impact on its business. The short-term impact of COVID-19 on the Company’s performance is likely to be reflected in the 2019/2020 earnings,” said Rebecca Miano.
In 2018, the Company paid its shareholder KSh 2.64 billion in dividends which translated to KSh 0.40 for every ordinary share.
The listed power generator will hold its virtual Annual General Meeting on October 22nd, 2020.
If shareholders approve the dividend payout, payments will be made on December 17th, 2020 to members who will be on the Company’s register at the close of business on October 22nd, 2020.
According to Genghis Capital, the final dividend for FY19 represents a pay-out ratio of 20.8 percent, a departure from its dividend policy of 33.3 percent which would translate to Ksh 0.40 dividend per share.
“This is a bit disappointing. However, it will be keen to watch the FY20 dividend amidst two key events; the unraveling pandemic necessitating the need for capital preservation and the tax credit booked in 1H20 (Ksh 1.9 billion) which would ideally translate to higher dividend,” Genghis Cross-Asset Weekly Strategy – 7th September 2020.