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KenGen’s Half Year Profits Up By 9% To 7.5 Billion

BY Soko Directory Team · March 1, 2022 02:03 pm

KEY POINTS

Total assets rose by 1.4 percent y-o-y to 431.5 billion shillings while total liabilities increased by 1.3 percent y-o-y to 218.0 billion shillings. Total equity went up by 1.5 percent y-o-y to 213.5 billion shillings.   

KEY TAKEAWAYS

Total other income came in at 898.0 million shillings (from a loss of  202.0 million shillings in 1H21) supported by a 63.9 percent y-o-y rise in other income to 295.0 million shillings and positive net gains of 603.0 million shillings. 

KenGen has reported a 9 percent increase in profit before tax of 7.5 billion shillings for the half-year period ended December 31, 2021, from 6.9 billion shillings which were recorded during a similar period in 2020.

Net revenue increased just 1.3 percent to stand at 5.1 billion shillings from 5 billion shillings the previous half of 2020. Total revenue increased 14 percent from 21.8 billion shillings to 24.8 billion shillings.

Gross revenue climbed by 13.7 percent y-o-y to 24.8 billion shillings and this was attributable to higher revenue receipts from drilling consultancy and operations outside Kenya.

Owing to a higher rise in total reimbursable expenses (+236.6 percent y-o-y to 4.2 billion shillings) in comparison to the growth realized in gross revenues, net revenues grew marginally by 0.4 percent y-o-y to 20.6 billion shillings.

Total other income came in at 898.0 million shillings (from a loss of  202.0 million shillings in 1H21) supported by a 63.9 percent y-o-y rise in other income to 295.0 million shillings and positive net gains of 603.0 million shillings.

Total operating expenses went up by 8.0 percent y-o-y to 14.1 billion shillings mainly driven by higher operating expenses (+13.2 percent y-o-y to 6.6 billion shillings), depreciation & amortization costs (+2.5 percent y-o-y to 5.9 billion shillings), and steam costs (+8.3 percent y-o-y to 1.7 billion shillings following increased dispatch from Olkaria I AU and V geothermal plants).

The company’s operating profit settled at 7.4 billion shillings, 1.8 percent higher y-o-y. Owing to the higher rise in gross revenue vis-à-vis operating profits, the operating profit margin for the period eased to 29.9 percent from 33.4 percent realized in 1H21.

Finance income increased by 21.7 percent y-o-y to 1.0 billion shillings attributable to interest earned on increased cash balances (related to ongoing projects and rescheduled loan repayments). Finance costs eased by 27.2 percent y-o-y to 897.0 billion shillings as a result of a reduction in loan balances.

Income tax expense advanced by 32.0 percent y-o-y to 2.4 billion shillings owing to the reversal of the corporate tax rate to 30.0 percent (from 25.0 percent) and Olkaria V capital allowances.

Total assets rose by 1.4 percent y-o-y to 431.5 billion shillings while total liabilities increased by 1.3 percent y-o-y to 218.0 billion shillings. Total equity went up by 1.5 percent y-o-y to 213.5 billion shillings.

Cash and cash equivalents at the end of the year increased by 46.8 percent y-o-y to 15.8 billion shillings. Net cash generated from operations declined by 18.6 percent y-o-y to 11.3 billion shillings.

Net cash used in investing activities eased by 28.4 percent y-o-y to 4.9 billion shillings while net cash used in financing activities surged by 186.6 percent y-o-y to 4.3 billion shillings.

The company is gearing to commission Olkaria I Additional Unit 6 (83.4 MW) geothermal power plant this year.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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