Tax savings from completion of Olkaria V geothermal plant push KenGen profits
Increased geothermal power generation capacity through the addition of the Olkaria V geothermal power plant, pushes KenGen profits.
As reported locally by Capital FM in Kenya, Kenya Electricity Generating Company (KenGen) has reported a 98% increase on its profits after tax with a total of Sh 8.17 billion (around USD 78 million) for the first half of the 2019/ 2020 financial year ending Dec. 2019.
KenGen has also been able to increase a 100+% increase in other income. The company’s Managing Director and CEO Rebecca Miano attributed the growth to the roll-out of the company’s business diversification strategy, which has seen the company clinch two drilling contracts in Ethiopia.
Financial analysts are optimistic on the financial performance of KenGen for its current financial year, due to its increase in geothermal power generation capacity, additional revenue streams (see drilling activity as contractor in Ethiopia) and the large tax credit.
Source: Capital FM