Kenya Power up 1pc on high transmission costs
Electricity distributor Kenya Power has reported a one percent rise in its full year to June net profit despite growing its revenues.
In its latest financial report, Kenya Power indicates that its profit for the year stood at Sh7.2 billion, marking stagnation from last year’s after tax profit of Sh7.1 billion.
According to the utility firm, the performance was impacted by higher transmission and distribution costs during the period which rose 16 percent to Sh33.4 billion.
“The rise was attributed to higher operational and maintenance costs on the expanded electricity network facilities, depreciation due to increased capital investment and the rising cost of doing business,” Kenya Power said in a statement.
Kenya Power has been on aggressive expansion plan to connect more customers to the national grid with 6.2 million connections as at the end of June.
During the period under review, Kenya Power’s revenue rose 11 percent to Sh120.7 billion mainly on account of increased fuel cost charges to customers which rose from Sh12.5 billion to Sh22 billion.
Electricity units generated from thermal plants increased by 66.9 percent, from 1,297 gigawatt hours the previous year to 2,165 gigawatt hours.
Power purchase costs, excluding fuel and foreign exchange costs, decreased from Sh 51.4 billion shillings the previous year, to Sh50.6 billion.
Kenya still relies heavily on hydro generated electricity which was affected this year due to the prolonged drought.
“This is attributable to a reduction in units purchased from the hydro generation due to poor hydrology in the year and reduced geothermal generation in the year,” the firm said.
Kenya Power plans to connect an additional 1.2 million customers to the grid by June 2018 but anticipates stagnation in power sales as connections taper off.
The board has recommended a dividend payout of 50 cents for each share held, which is the same as last year, with an annual general meeting set for December 1.
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