, NAIROBI, Kenya, Oct 23 – Increased electricity sales and tariff reviews have pushed Kenya Power’s net profit up by 87.6 percent to Sh6.46 billion in the 2014 full year, compared to Sh3.44 billion recorded last year.
Electricity sales grew by 9.8 percent from 6.1 billion units in 2013 to 6.7 billion units during the year under review.
The latter, combined with improved average yield, led to a 30.6 percent increase in sales revenue from Sh47.9 billion to Sh62.5 billion.
“This increase is attributed to additional generation capacity charges and increase in energy charges resulting from the rise in unit purchases from 7,562 Gigawatt hours (GWh) the previous year to 8,254 GWh, an increase of 9.2 percent,” Kenya Power Managing Director Ben Chumo said.
On tariff review, Chumo says the yield was intended to meet additional purchase costs which increased to Sh30.6 billion, excluding fuel costs and foreign exchange surcharge.
The company recorded an increase in consumption of electricity among domestic, large and medium commercial and industrial power consumers which pushed sales up by 30.6 percent to Sh62.5 billion for the period under review.
“Sales to the heavy commercial and industrial consumers were up 36.13 percent to Sh33.5 billion from Sh24.6 billion in the same period of 2013. Domestic customers accounted for Sh15.8 billion in sales a 21 percent rise from the Sh12.9 billion recorded in June 2013,” Chumo explained.
Finance costs climbed 60.8 percent to Sh4 billion as the company took additional medium and short term loans and raised its proportion of new debt to new investments from 56 percent to 62 percent.
Plans by the company to adopt a single wire earth return system is expected to enable it cut costs of connecting new customers.
“Our profitability as Kenya Power lies in the powering of industry in Kenya. As a catalyst for economic growth, we will take up our role in advancing economic prosperity by putting in place the necessary electricity infrastructure to attract investments to the country,” Chumo said.
Shareholders will get a final dividend of 30 cents per ordinary share.