Page 9 - AfrElec Week 09 2022
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AfrElec                                     COMPANY NEWS                                             AfrElec




       Kenya Power reports huge jump in





       profit amidst reforms





                         KENYA  Power has reported a KES3.82bn  government intervention with state agencies, it
        KENYA            ($33.6mn) profit after tax for the second half  said.
                         of 2021, a huge jump from just KES138mn   Similarly, the utility says it will continue
                         in 1H2020 as the state electricity distributor  to make investments in the network so as to
                         returned to profitability last year, driven by a  increase its reliability, and continuously improve
                         series of reforms.                   its connectivity process in order to onboard
                           Management attributed the performance to  more customers to the grid.Kenya has connected
                         rising sales (up 8.7% year on year), enhanced  approximately 8.6mn households to electricity
                         efficiency (up 2.33pp y/y to 73.13%) and lower  as of December 2021, up from 7.3mn in January
                         operating costs (down 5% y/y) in tandem with  2020, the energy regulator said on Thursday.
                         higher revenue (up 12.9% y/y).         Energy and Petroleum Regulatory Author-
                           “This was driven by an increase in customer  ity (EPRA) director general Daniel Kiptoo told
                         connectivity, as well as improved supply qual-  journalists that Kenya is the only country in East
                         ity and reliability due to enhanced preventive  Africa with electricity access to over 75% of its
                         maintenance works, network refurbishment and  population, The East African reported.
                         accelerated faulty meter replacements,” Kenya   “The increased access to electricity is a big
                         Power management said in a statement on Fri-  boost towards the attainment of the country’s
                         day (February 25).                   national development blueprint vision 2030
                           Furthermore, overdue customer debt  which seeks to transform Kenya into a newly
                         recorded a reduction for the first time in five  industrialising, middle-income country by the
                         years, of KES900mn, as a result of enhanced  year 2030,” Kiptoo said at the release of the 2021
                         field and customer engagement, and continued  Energy and Petroleum Statistics Report.™


       KenGen posts $45mnprofit





        KENYA            KENYA Electricity Generating Company Plc  and maintenance, and higher steam costs follow-
                         (KenGen) posted a profit after tax of KES5.12bn  ing increased dispatch from Olkaria 1 AU and V
                         ($45mn) in the second half of 2021.  geothermal plants.
                           Nairobi-listed KenGen attributed the mod-  Finance income rose by 22%. The interest
                         est rise of KES0.06bn in annual terms to the  was earned on increased cash balances held for
                         cancelling of pandemic-related relief measures  ongoing projects and loans whose payment has
                         implemented in 2020, and the corporate tax rate  been rescheduled as part of the pandemic relief
                         reverting to 30% from 25% in 1H2021.  programme by financing partners.
                           “We remain steadfast on the path of growth   Finance costs declined by 27 % from KES 1.2
                         and operational excellence for business sustain-  bn to KES 897 mn owning to a reduction in loan
                         ability. In the same way, we support the ongoing  balances. The board of directors did not recom-
                         energy reforms,” KenGen company secretary  mend an interim dividend.
                         Lawrence Kibett said.                  KenGen is committed to executing its strat-
                           Unaudited results show pre-tax profit up  egy of capacity growth from renewable and rev-
                         by 9% y/y to KES7.5 bn. Kibett said the firm’s  enue diversification initiatives.
                         performance for 2H2021 remained stable,   “We look forward to commissioning Olkaria
                         supported by increased income from revenue  1 Additional Unit 6 geothermal power plant this
                         diversification initiatives and overall growth in  year. This will increase our electricity generation
                         electricity demand.                 portfolio from renewable by 83.4 megawatts and
                           Total revenue increased by 14% in the period  contribute to the further replacement of thermal
                         under review, with growth attributable to higher  generation,” said Kibett.
                         revenue receipts from drilling consultancy and   “We remain steadfast on the path of growth
                         operations outside Kenya.           and operational excellence for business sustain-
                           Operating costs increased by 8% due to  ability. In the same way we support the ongoing
                         increased business activities in Ethiopia, repairs  energy reforms,” he said.™




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