By MUGAMBI MUTEGI, pmutegi@ke.nationmedia.com
Posted Friday, February 26 2016 at 17:19
Posted Friday, February 26 2016 at 17:19
In Summary
- This performance would have been more impressive were it not for higher operating costs which went up by about a quarter to Sh8.7 billion while financing costs increased 22 per cent to Sh1.62 billion.
KenGen’s
net profit for the six months to December has grown 15 per cent on
increased sales even as higher operating and financing costs weighed
down its performance.
The NSE-listed electricity producer has reported that its
after-tax earnings for the period stood at Sh5.7 billion, compared to
Sh4.92 billion recorded in 2014.
The firm closed the period with revenues of Sh14.8
billion, representing a 27 per cent jump from the Sh11.7 billion
recorded the previous year.
This performance would have been more impressive
were it not for higher operating costs which went up by about a quarter
to Sh8.7 billion while financing costs increased 22 per cent to Sh1.62
billion.
KenGen, which has been investing heavily in power
generation plants over the past years, closed the period with assets
worth Sh355 billion up from Sh342.5 billion the previous year.
The company, which is owned 70 per cent by the
State, closed the six months with current liabilities of Sh21.3 billion,
including a Sh6.2 billion provision for dividends payable.
KenGen shareholders in December approved the firm’s
Sh28 billion rights issue, paving the way for the firm to seek
approvals from the Capital Markets Authority with a view of launching
the issue by June.
The cash will primarily be used to boost production capacity.
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