Kenya Electricity Generating Co Ltd (KenGen) (KEGN.NR) announced on Friday that its pre-tax profit for the fiscal year ending in June increased by 38%, resulting in a positive impact on the company’s stock value.
KenGen reported that its pre-tax profit surged to 8.53 billion Kenyan shillings (equivalent to $57 million) from 6.19 billion Kenyan shillings in the preceding year, attributing this growth to a notable 14% increase in revenues, which reached 53.96 billion Kenyan shillings. Notably, the company, predominantly owned by the Kenyan government with a 70% stake, boasts an installed generation capacity of 1,904 megawatts (MW) and plays a crucial role by supplying 66% of the power needs within the East African nation.
In an official statement, KenGen has articulated its strategic objective to enhance its installed capacity by an additional 58 MW in the coming two years. This endeavor will be achieved by augmenting power generation within three of its pre-existing geothermal power plants.
KenGen reported a noteworthy increase in its earnings per share, rising from 0.51 shillings to 0.76 shillings. In line with this positive financial performance, the company has proposed a dividend payment of 0.30 shillings per share, a significant uptick from the 0.20 shillings distributed in the preceding fiscal year.