Kenya Power half year 2017 pre-tax profit down 9.7pc

Kenya Power has posted a 9.7 percent decline in their pre-tax profit to KSh10,912 million in the first half of 2017 down from KSh 12,083 million in 2016.

The management attributes the decline to increased transmission and distribution cost as a result of maintenance activities on the expanded network.

The net profit after tax was Ksh 7,266 million compared to Ksh 7,197 million the previous year after taking into account a tax charge of Ksh 3,646 million.

Transmission and distribution costs increased by 16.6 percent from Ksh 28,651 to Ksh 33,417 million in the year. The rise was attributed to higher operational and maintenance cost on the expanded electricity network facilities, depreciation due to increased capital investments and the rising cost of doing business.

According to KPLC, power purchase cost, excluding fuel and foreign exchange cost decreased by Ksh 784 million from Ksh 51,400 million the previous year to Ksh 50,616 million. “This is attributable to a reduction in units purchased from the hydrogen ratio due to poor hydrology in the year and reduced geothermal generation in the year.”

The Directors recommend to shareholders, a first and final dividend of Ksh 0.50 per ordinary share for the year ended 30th June 2017.