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Kenya

KenGen in 33pc profit leap

NAIROBI, Kenya, Feb 28- Kenya Electricity Generating Company (KenGen) has reported a 32.9 percent increase in profit after tax to Sh1.19 billion for the half year ended December 31 2011.

The performance was credited to improved hydrology that the country experienced between October and December 2011 which positively impacted the company’s hydrology capacity.

“The improved hydrology during the period coupled with the additional capacity of the newly commissioned Tana and Kipevu III power plants contributed to the increased of five percent in our electricity sales,” Managing Director Eddy Njoroge said in a statement.

Consumption rose from 2.54 billion units in December 2011 to 2.66 billion units in December 2011.

Revenues on the other hand also grew by 13 percent to Sh7.15 billion during the period under review up from Sh6.34 billion in 2010.

“Operating expenses increased by 11 percent to Sh5.55 billion mainly due to increased depreciation from Tana and Kipevu III power plants. Financing costs increased by 127 percent due to interest on Public Infrastructure Bond (PIB) on the completed plants commissioned during the year,” Njoroge went on.

No interim dividend will be paid out; but the MD was optimism that the outlook for the second half of the year is bright.

“The average rains (received in October to December) have improved our reservoirs levels and we therefore anticipate normal hydro generation in the next half of the year ending June 2012,” he added.

Further, the company expects newly commissioned plants to start contributing to the national grid hence ensuring stable and reliable power supply.

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The 21 MW (Megawatts) Sang’oro plant should be commissioned in March 2012 while the 32MW from Kindaruma facility should come on stream by June 2013, he disclosed.

“The pilot 5MW geothermal wellhead project is progressing well and the first turbine has been commissioned,” Njoroge said.

He further emphasised that the ongoing plans would be delivered within the set timelines in order to help meet the country’s rising energy demand estimated at 15 percent per year.

“We have secured all financial commitments from our development partners – the World Bank, AfD, KfW, EIB and JICA. The government has continued in committing drilling funds while KenGen is using the PIB funds in meeting the funding requirement,” he added of their multi billion shillings ventures.

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