KenGen Managing Director and CEO, Rebecca Miano said the profit growth was achieved on the back of continued revenue growth underpinned by the company’s diversification strategy.
“Revenue increased by 4.06% from Ksh.44.110 billion in 2020 to Ksh.45.901 billion. This was mainly attributed to revenues from geothermal, hydro generation and the diversification venture at Tulu Moye in Ethiopia. The ongoing geothermal drilling services in Tulu Moye contributed Ksh.1.784 billion compared to Ksh.440 million in the previous year,” said the KenGen MD and CEO.
There was a growth of 3% in unit sales from 8,237GWh in 2020 to 8,443GWh in 2021. The Company benefited from a full year operation of the 172MW Olkaria V geothermal power plant whose construction was completed in October 2019, resulting in a 12% displacement of thermal generation.
During the year, the company said it incurred an income tax expense of KSh13.5 billion compared to KSh4.5 billion the previous year.
“The corporate tax rate was reduced from 30 per cent to 25 per cent in 2020 but reversed back to 30 per cent in 2021 resulting in a tax expense of KSh8.7 billion on deferred tax compared with a credit of KSh8.1 billion in the previous year. This contributed significantly to the high tax expense of Sh13.5 billion compared to a previous year tax credit of Sh4.5 billion,” the company said in a statement.
In the year ahead, KenGen aims to deliver Olkaria I Unit 6 geothermal power plant, which will add 83MW to the national grid by end of December 2021.
At the same time, the company aims to progress the milestones towards the commencement of the 140MW Olkaria VI geothermal power plant through a Public-Private Partnership.
The board of the NSE-listed company recommended a dividend pay-out Ksh 0.30 per share which amounts to Ksh 1.98 billion to be paid to all its shareholders.