Kenya Power records 52pc increase in pre-tax profits

CEO Dr. Ben Chumo: The Kenya Power directors have proposed an interim dividend of KES 0.20 for each ordinary share payable on 29th May 2015. (PIX: Courtesy).

Kenya Power has recorded a 52pc pre-tax profits for the period ending December 2014.

Managing Director Ben Chumo said in the half year period ending December 2014, the firm’s pre-tax profit rose to KES 6.4bn, up from KES 4.19bn recoded in a similar period in December 2013.

Dr. Chumo attributed the increment to improved power supply and sales, increased connectivity and tariff increment effected last year.

“Our electricity revenue, excluding foreign exchange surcharge and fuel recovery grew to KES 37.6bn from KES 26.92bn recorded in the previous review period due to rise in unit sales and improvement in average yield,” said Dr. Chumo.

He said the power purchase costs excluding fuel and foreign exchange costs increased from KES 13.7bn to KES 20.04bn due to absorption of additional generation capacity and increase in energy charges. The company increased its purchase units to 4,320 GWh from 4,093 GWh in a similar period under review.

He said hydro-generation was between October and December was affected because of low rainfall levels, resulting in the use of additional power from thermal generation.

“This saw the fuel cost, which is a pass-through component, increase to KES 17.15bn from KES 889mn in the period under review. However, the overall cost which would have been higher was mitigated by increase in geothermal generation,” he said.

KPLC is currently undertaking a countrywide network upgrade and expansion to enhance its distribution and connectivity capacity.

This capital intensive is designed to improve the quality of service to customers and is in line with the business’ growth strategy. It has resulted in an increase in expense costs to KES 10.45bn from KES 9.7bn incurred the previous period.