KenGen has ended a two-year dry spell to declare a dividend of Sh0.40 per share for the financial year ending June 30, 2018.
Profit Before Tax improved by 2% to Sh11.75b from Sh11.46b realising over a similar period last year attributable to increased generation revenue and steam sales.
Profit After Tax reduced by 12% to Sh7.89 billion from Sh9 billion in 2017. During the year under review, the company commissioned the Olkaria 280MW realising capital allowance for which tax credits were realised in the last financial year.
Tax expense for the year was Sh3.855 billion compared to Sh2.455 billion the previous year. The prior year’s tax expense was lower largely due to effect of tax incentive (investment deduction) granted on commissioning of new geothermal wellhead plants.
The company says it realised better energy and steam revenues owing to the completion of wellhead plants, improved evacuation from Olkaria upon completion of Olkaria-Suswa line, increased steam costs due to improved discharge, higher depreciation on completed wellheads and capitalisation of steam wells as well as a slight increase in interest income owing to reduced closing balance of the Infrastructure Bond.
For 2018/2019, KenGen says its key initiatives are geared towards additional capacity, improved shareholder value and increased revenue.
“We are happy to give you some good news and invite you to help us celebrate this achievement. When a Kenyan parastatal declares dividends of Sh2.6b, that is something to celebrate,” Chairman Joshua Choge said.
KenGen managing director Rebecca Miano said the company has produced good results despite difficult circumstances.
“I’m pleased to be here to celebrate a Kenyan success story…we have taken charge of our own destiny,” Water and Irrigation Cabinet Secretary Simon Chelugui, who was the chief guest at the investor briefing, said.
Energy Principal Secretary Joseph Njoroge said the government intends to make Kenya a middle income industrial nation that offers good life to its citizens, terming energy as an enabler.
“KenGen geothermal base-load diversification strategy pays-off by cushioning effects of dry hydrology and keeps the business in pace. The Company continues to focus on optimising the profitability of its existing assets to create value for stakeholder,” Acting Finance Director Mary Maalu said during the unveiling of the results.