, NAIROBI, Kenya, Sep 27 – The Kenya Electricity Generating Company (KenGen) has announced that its net profit jumped from Sh2.08 billion for a similar period last year to Sh2.822 billion for the financial year ending June 2012.
The performance follows good results in terms of total revenue which grew by 15 percent from Sh15.2 billion to Sh17.4 billion mainly on the back of growing electricity capacity.
During the year under review, a total of 52.5 Megawatts (MW) of power were added to the national grid to make a total power capacity of 1233.2MW, with the completion of Sang’oro, Kindaruma 3rd unit, Eburru and the pilot Geothermal Wellhead generator.
KenGen Managing Director Eddy Njoroge said the performance was satisfactory in light of the economic challenges experienced during the period.
He further explained the need for economically performing power utilities.
“Power generation is a capital intensive undertaking that requires a firm able to meet its financial obligations in the process of growing power generation ahead of demand in the country,” he said.
According to Njoroge, a keen eye on the firm’s operating costs was also key to the results announced today as operating costs rose by only 2.5 percent from Sh10 billion to Sh10.2 billion.
He acknowledged that the strong performance now puts KenGen in a good position to deliver 3000MW of power by 2018 to drive Vision 2030.
Projects underway include the Olkaria I & IV 280MW project, the 20.4MW Ngong Wind Project, 8MW Lower Tana upgrade and a further 65MW Well-head generation following the success of the pilot unit currently generating 5MW.
KenGen has also began planning for steam wells drilling in the Olkaria Geothermal Fields to generate a further 560MW by 2018 after completion of a resource optimization study that confirmed the resource.
With the successful year, the board of directors has recommended a final dividend of Sh0.60 per ordinary dividend, which is 20 percent higher than the dividend payout for the previous year.