KenGen Limited (KEGN.ke) HY2022 Interim Report
Our performance for the six-months ended 31st December 2021 remained stable supported by increased income from revenue diversification initiatives and overall growth in electricity demand. Total Revenue increased by 14% from KShs 21,801 million in December 2020 to KShs
24,793 million for the period ended 31st December 2021. This growth is mainly attributed to higher revenue receipts from drilling consultancy and operations outside Kenya.
Operating costs increased by 8% to KShs 14,130 million from KShs 13,090 million in 2020 owing to increased business activities in Ethiopia, repairs and maintenance, and higher steam costs following increased dispatch from Olkaria | AU and V geothermal plants. Finance income increased by 22% from KShs 829 million to KShs 1,009 million. The interest was earned on increased cash balances held for ongoing projects and loans whose repayment has been rescheduled as part of Covid-19 relief program by financing partners.
Finance costs declined by 27% from KShs 1,231 million to KShs 897 million owing to a reduction in loan balances. Finance income increased by 22% from KShs 829 million to KShs 1,009 million.
Profitability: Profit before tax increased by 9% from KShs 6,872 million in 2020 to KShs 7,520 million for the six months ended 31st December 2021. Income tax expense increased by 32% to KShs 2,339 million from KShs 1,817 million in December 2020 reflecting the impact of corporate tax reversal from 25% back to 30% and Olkaria V capital allowances all of which resulted in a lower effective tax rate of 26% in 2020.
Consequently, profit after tax rose from KShs 5,055 million in 2020 to KShs 5,121 million for the six months ended 31st December 2021.
KenGen is committed to the execution of its strategy for capacity growth from renewables and revenue diversification initiatives. We look forward to commissioning Olkaria |Additional Unit 6 geothermal power plant this year. This will increase our electricity generation portfolio from renewables by 83.4MW and will contribute to further replacement of thermal generation.
We remain steadfast on the path of growth and operational excellence for business sustainability. In the same way we supportthe ongoing reforms in the Energy Sector.
The Board of Directors does not recommend an interim dividend for the period.
We appreciate all our stakeholders for their invaluable contribution to the Company’s performance.
By Order of the Board,
28th February 2022
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