Kenya Power Profits Slump By Over 60 Per Cent To Ksh1.92 Billion
Kenya Power’s full-year pretax profit has plunged to Ksh1.92 billion, a 63.7 per cent drop from Ksh7.66 billion the previous year.
The company had issued a profit warning last month. The company says that transmission and distribution costs went up as a result of maintenance activities on expanded network.
Power purchase costs, excluding fuel and foreign exchange costs, increased by Ksh2.59 billion to Ksh52.79 billion.
The management attributed this to lean electricity sales as well as increased transmission and distribution costs.
Transmission and distribution costs rose 14 percent to Ksh39.63 billion.
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Kenya’s sole power distributor however said total revenue rose to Ksh125.85 billion, up from Ksh120.74 billion in the previous year.
“This is attributable to an increase in units purchased from geothermal sources in the year by 602 GWh or 13.5 per cent from 4,451 GWh the previous year to 5,053 GWh,” said Kenya Power in a statement.
Finance costs rose by 29.3 per cent to Ksh7.8 billion partly due to increased use of short term loans.
The current liabilities have exceeded current assets by Ksh51.67 billion, reflecting a 48.5 per cent.