KenGen Posts KSh18.3Bn Profit Year Ended June 2020

KenGen, Kenya’s biggest electricity producer, says its half-year profit before tax soared 9.5% to Kshs. 6.87 billion for the period ended 31 Dec 2020.

Kengen CEO Rebecca Miano

Kenya Electricity Generating Company PLC (KenGen) says its profit after tax surged to KSh18.3 billion for the year ended June 30, 2020, from KSh7.8 billion recorded a similar period in 2019.

Kenya’s biggest electricity producer said its Profit Before Tax on the other hand grew by 8.3 per cent to KSh13.9 billion from KSh11.6 billion reported previous financial year.

“We reported a 13.4 per cent growth in electricity revenue, mainly due to the full operationalization of the 165MW Olkaria V geothermal power plant in November 2019, which boosted geothermal production by 14 per cent,” the Managing Director and CEO, Rebecca Miano, said.

The firm projects increased revenue going forward on increased power sales and diversification strategy.

“In 2021, we aim to deliver the Olkaria I additional unit 6 geothermal power plant, which will add 83.3MW to the national grid,” Ms Miano said.

“In the year ahead, we aim to deliver Olkaria I Unit 6 Geothermal Power Plant, which will add 83.3MW to the national grid, and continue with our diversification strategy focusing on consultancies, operations and maintenance services, training, and the operationalization of materials testing laboratory and electronic instruments calibration centre,” she added.

The Board has recommended a first and final dividend for the year of KSh0.30 per ordinary share of KSh2.50.

Genghis Capital Analysts in their KenGen Company Plc (NSE: KEGN) FY20 Earnings Note, they maintain a buy rating at a target price of Ksh 7.11.

“At current market prices, the business remains a value pick for long term investors.”