The Kenya Electricity Generating Company PLC (KenGen) reported a 48% increase in profit after tax for the year ending June 30, 2023, rising to Ksh 5.02 billion from Ksh 3.4 billion the previous year.
Revenues also grew by 14%, from Ksh 47.48 billion in 2022 to Ksh 53.96 billion, attributed to the company’s investments in geothermal energy.
KenGen’s Managing Director and CEO, Peter Njenga, attributed this performance to the improved operational efficiency of the company’s geothermal fleet in Olkaria, Naivasha.
This was further boosted by the positive impact of the newly commissioned Olkaria I Additional Unit 6 geothermal power plant, which added 86 MW to the grid in July 2022.
“The commissioning of the Olkaria I AU 6 geothermal power plant pushed our geothermal generation by 24 per cent. This contributed to an overall increase in electricity unit sales from 7,918 GWh in 2022 to 8,027 GWh,” said KenGen Managing Director and CEO Peter Njenga.
Despite an increase in operating costs due to rising insurance and impairment costs, KenGen reported a pre-tax profit of Ksh 8.5 billion, a significant improvement from Ksh 6.2 billion the previous year.
Looking forward, KenGen plans to increase its generation capacity by more than 154 MW over the next two years by rehabilitating and upgrading its existing power plants.
This includes the Gogo Hydropower Redevelopment Project in Migori County, which will increase the dam’s electricity capacity from 2 MW to 8.6 MW.
The Board has recommended a first and final dividend for the year of Ksh 0.30 (2022: Ksh 0.20) per ordinary share of Ksh 2.50, which amounts to Ksh 1,978 million, representing a 50 per cent increment.
KenGen Share price up 7.5%
As a result, KenGen Plc closed its last trading day on Friday, October 27, 2023, at a share price of Ksh 2.30 on the Nairobi Securities Exchange (NSE).
This marked a 7.5% increase from its previous closing price of KSh 2.14.
Despite starting the year at a share price of Ksh 3.22, KenGen has seen a decrease of 28.6% in its price valuation, placing it 56th on the NSE in terms of year-to-date performance.
Over the past three months (July 31–October 27, 2023), KenGen traded a total volume of 17.4 million shares in 3,016 deals, valued at Ksh 40.5 million.
The average volume of shares traded per session was 276,914.
