Kenya Power records Sh9.97 billion half-year profit after tax
The figure also guarantees a Sh0.20 per share dividend payment to shareholders for the first time in nearly a decade, after individual share earnings shot up from Sh0.18 to Sh5.11.
Kenya Power has reported a remarkable financial turnaround for the half-year that ended on December 31, 2024, posting a net profit of Sh9.97 billion.
In a press briefing on Friday by MD and CEO, Dr. (Eng.) Joseph Siror, the company announced the figure which marks a significant increase from the Sh319 million recorded in the corresponding period of the previous year.
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This was largely driven by higher electricity sales, lower costs, and reduced finance expenses, supported by a stable Kenyan Shilling.
The figure also guarantees a Sh0.20 per share dividend payment to shareholders for the first time in nearly a decade, after individual share earnings shot up from Sh0.18 to Sh5.11.
"This growth in profitability is attributed to lower cost of sales and reduced finance costs owing to the stability of the Kenyan Shilling against major foreign currencies during the period under review," read the statement detailing the unaudited trading results from the board.
The company's electricity sales also grew by 5%, rising from 5,225 GWh to 5,506 GWh, driven by improved network reliability, faster outage resolution timelines, and the connection of new customers.
Moreover, the availability of critical materials such as meters and transformers played a crucial role in this growth.
Electricity revenue
However, overall electricity revenue dipped by 5.4% to Sh107.425 billion, a decline linked to lower passthrough costs and a tariff reduction path.
"We have made significant strides in stabilising our operations and positioning the company for long-term growth. Our ability to reduce finance costs by over Sh13 billion due to the repayment of key loans has positively impacted our financial health," noted the statement further.
The power purchase cost decreased thanks to a stronger local currency and an optimized generation mix, with 6.600 GWh of renewable energy purchased, up from 6.199 GWh in the previous period.
Operating expenses, however, rose by Sh4.010 billion, attributed to increased operational activities, staff costs, and network maintenance expenses.
The company's financial position was further bolstered by a 30% improvement in working capital, reflecting effective resource management initiatives aimed at achieving financial sustainability.
Looking ahead, the company says it is focused on sustaining its improved financial performance through efficiency-enhancing initiatives, diversifying revenue streams, and driving long-term growth.
The company is also advancing its transformer metering project to improve energy balance and system efficiency and stands poised to benefit from the anticipated lifting of the moratorium on new power generation contracts.
Additionally, the implementation of the Government's Digital Superhighway project to roll out last-mile fibre optic cable connectivity to approximately 6,000 government institutions is expected to create new growth opportunities.
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