Kenya Power says H1 pretax profit up 17 pct
28 February 2014, 08:32
Nairobi - Kenya Power on Thursday posted a 17-percent rise in pretax profit to 4.19 billion Kenyan shillings for the six months to the end of December helped by higher revenue and despite a jump in finance costs.
The sole electricity distributor in east Africa's biggest economy said its financing costs rose to 2.63 billion shillings from 908 million a year earlier.
Revenue from the sale of electricity, which excludes foreign exchange and fuel cost recovery, rose 16 percent to 26.92 billion shillings. Operating expenses edged up to 41.82 billion shillings from 41.30 billion.
Kenya suffers from frequent blackouts due to supply shortfalls and an aging grid, forcing most businesses and wealthy people to have stand-by generators.
Kenya Power said last week it planned to spend 86 billion shillings over the next three years to upgrade its electricity distribution network in order to keep up with the growing demand.
"The company has firm plans in place to expand its network, reduce power outages and improve voltages throughout the country," it said in a statement, without offering details.
Kenya plans to add 5,000 megawatts of power generation capacity by 2017 to the existing 1,664 MW to meet growing demand on the back of expanding economic activities.
Kenya Power said its earnings per share for the period eased to 1.54 shillings from 1.59 shillings and recommended an interim dividend of 0.20 shillings per share.
It did not pay an interim dividend in the same period of the last financial year.