Kenya Power has announced an impressive net profit of Ksh.9.97 billion for the half-year period ended December 31, 2024. This significant financial performance is attributed to increased electricity sales, reduced cost of sales, and lower finance costs.
During the period, electricity sales rose by 5% to 5,506 GWh, up from 5,225 GWh in the same period of the previous financial year.
The growth in sales was driven by improved network reliability, connection of new customers, and enhanced outage resolution timelines.
“The increase in electricity unit sales was driven by higher consumption as a result of improved network reliability, connection of new customers and improved outage resolution timelines supported by the availability of critical materials including meters and transformers,” said Kenya Power’s Managing Director & CEO, Dr. (Eng.) Joseph Siror.
Despite the increase in electricity sales, power purchase costs decreased by Ksh.11.65 billion, thanks to the strengthening of the Kenya Shilling against major foreign currencies. This reduction in costs, combined with lower finance costs, contributed significantly to the company’s improved financial performance.
Finance costs reduced by Ksh.13 billion to Ksh.1.97 billion in December 2024, down from Ksh.15 billion in December 2023.
This decrease is attributed to the strengthening of the Kenyan Shilling against major foreign currencies, which account for 90% of the company’s loan portfolio.
Kenya Power’s Managing Director & CEO, Dr. (Eng.) Joseph Siror, noted that the company’s strategy focuses on powering people for better lives while maintaining operational excellence.
He emphasized the company’s commitment to sustaining its improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams.
To drive long-term growth, Kenya Power is advancing the transformer metering project to improve energy balance and system efficiency.
The company is also poised to capitalize on the anticipated lifting of the moratorium on new power generation contracts, which is expected to increase electricity sales as peak demand rises.
As part of its revenue diversification plan, Kenya Power has commenced implementation of the Government’s Digital Superhighway project, which involves rolling out last-mile fibre optic cable connectivity to approximately 6,000 government institutions nationwide.
“At the core of our strategy is a commitment to powering people for better lives while maintaining a sharp focus on operational excellence. Looking ahead, we are committed to sustaining our improved financial performance through targeted initiatives that enhance efficiency and diversify revenue streams to drive long-term growth,” said Dr. (Eng.) Siror.
Following the positive performance, the Board of Directors has announced an interim dividend of Ksh.0.20 per share.
Source: https://energynewsafrica.com
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