NAIROBI : Electricity generating company Kengen yesterday reported a 308 per cent growth in net profit to Sh11.5 billion from Sh2.8 billion in 2014.
Speaking at an investor briefing to announce the company’s full year results for the year ended June 30, managing director Albert Mugo attributed the growth in profitability to increased installed capacity, improved performance and a Sh2.82 billion tax credit from capital allowances following the commissioning of the 280MW Geothermal project and well heads in Olkaria and the Ngong wind
“We are now beginning to unlock the value of investments, though the full impact of geothermal power from the 280 MW plant in Olkaria will be realised in 2016,” said Mugo.
The company recommended a dividend per share of 65 cents, up from 40 cents in 2014. It’s total revenue grew 44 per cent to Sh26.6 billion from Sh18.5 billion in 2014 , with geothermal contributing 46 per cent which is a 21 per cent increase compared to 2014.
Electricity revenue grew by 47 per cent to Sh25.60 billion in 2015 from Sh17.42 billion in 2014 . Installed capacity grew by 26 per cent to 1,611 megawatts from 1,337 megawatts over the same period last year while capacity from geothermal sources increased by 99 per cent to 509 megawatts from 256 megawatts. Wind energy recorded a growth of 420 per cent.
The company’s operating expenses rose by 19 per cent to Sh8.40 billion from Sh7.01 billion, a cost associated with operating and maintaining the newly completed plants.
Mugo said company plans to leverage on innovations to exploit more geothermal energy. This will include introduction of 25 megawatt well head units which enable cheaper generation of energy as the company works on construction of a fully equipped power plant.
Kengen will also embark on more consultancy projects in the region to increase its revenue base, said Mugo. Kenya is ranked eighth globally in geothermal installed capacity, producing 609 MW. Mugo said the company has been contracted for projects in Rwanda, Sudan, and Comoros.