Kenya Electricity Generating Company (KenGen) has realised a 9% jump in profit before tax for the six months period ending December 31st 2020.
Kenya’s largest electricity generator profits have risen to Kshs. 6.8 billion compared to Kshs. 6.2 billion recorded in 2019.
The growth is largely attributed to an increase in electricity sales and revenue from commercial drilling services during the period under review.
The firm registered a 5% growth in energy sales as national electricity consumption saw a peak demand accelerate to 1,976MW in December last year compared to 1,882MW during the same period in 2019.
Revenue from geothermal operations continued to show a growth trajectory, recording an increase of 14% supported by additional generation capacity from Olkaria V and revenue diversification from an on-going geothermal drilling project in Ethiopia.
“Net revenue increased by 9% from Ksh. 18.9 billion in December 2019 to Ksh.20.5 billion for the period under review, primarily because of Olkaria V and revenue diversification from the Ethiopia drilling project,” said Rebecca Miano, KenGen Chief Executive Officer.
On February 11th 2021, the firm announced it had secured it’s third commercial deal with Djibouti worth Kshs. 709 million to drill geothermal wells in the country.
According to Miano, KenGen has adopted a diversification strategy which has seen it leverage its expertise in geothermal energy by offering commercial drilling services, geothermal development consulting, and other energy-related services locally and in the Horn of Africa.
She added that the NSE-listed firm aims to deliver a new geothermal power plant, Olkaria I Additional Unit 6 later this year which will add about 83MW to the national grid.