Africa-Press – Kenya. Electricity generator–KenGen has reported a 3.3 per cent drop in net profit for the six months period ended December 2022, as operating costs ate into the company’s revenues.
Profit after tax decreased marginally from Sh3.36 billion in December 2021, to Sh3.25 billion.
During the period, total revenue increased by 11 per cent from Sh24.7 billion to Sh27.5 billion, reflecting the impact of the additional geothermal capacity.
It came on the back of an increase in national peak demand, which grew by 5.6 per cent from 2,036 MW to 2,149 MW during the period under review.
“This national growth was catalyzed by the recent addition of 86MW from the Olkaria I Unit 6 geothermal plant and an expanded national transmission network,”acting managing director Abraham Serem said in the company’s financial statement on Tuesday.
“This addition was critical in securing the national power supply when our hydro generation was dimmed due to the prolonged drought,” Serem adds.
In addition, the Olkaria I unit 6 power plant also increased KenGen’s overall unit sales from 4,006 GWh in 2021 to 4,200 GWh for the six months ended December 31, 2022.
Operating costs however increased from Sh15.6 billion in 2021 to Sh 18.1 billion in 2022, primarily due to an increase in depreciation expense following revaluation of assets, the addition of Olkaria I Unit 6, and an increase in insurance costs.
Finance income was Sh1.027 billion, down from Sh1.038 billion in the previous period.
Finance costs rose from Sh897 million to Sh1.17 billion, owing to the expiry of a moratorium on some of the borrowings as part of Covid-19 relief measures by financiers.
Meanwhile, KenGen is committed to implementing its renewable energy growth strategy and revenue diversification initiatives, management has said.
“We are on track to rehabilitate the forty-year-old 45 MW Olkaria I geothermal power plant, giving it a new lease of life and increasing its capacity to 63 MW,” Serem said.
Concurrently, the firm is uprating Olkaria I Additional Units 4 and 5 and Olkaria IV, increasing their combined capacity by 40 MW from 300 MW to 340 MW.
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