Power producer KenGen’s half year net profit has dropped 11.4 per cent despite recording a surge in electricity sales in the period ended December.
The firm listed on the Nairobi Securities Exchange announced an after tax profit of Sh4.09 billion compared to Sh4.62 billion it booked in a similar period a year earlier. Shareholders will go without an interim dividend payout.
Electricity sales grew to Sh14.9 billion in the review period from Sh14.6 billion, powered by a revenue surge from geothermal power generation.
The company earned another Sh3.1 billion from steam sales, lifting its total revenues in the half-year period to Sh18 billion. The revenue growth was, however, weighed down by rising operating expenses and amortisation costs.
“Depreciation and amortisation expenses increased by 14.7 per cent from Sh4.5 billion to Sh5.1 billion due to capitalisation of completed wellheads and wells towards the end of the last financial year,” the MD Rebecca Miano said.