Kengen has reported a profit drop for the half year period ended December 2016. The power producer announced that its profits fell by 18.4 per cent to Sh. 4.6 billion from Sh. 5.6 billion recorded the previous period.
The company’s operating expenses increased six per cent to Sh. 4.3 billion while sales declined 11.4 per cent to Sh. 20 billion.
“The results for the period were impacted by the decommissioning of Garissa, Lamu and Embakasi gas turbine thermal power plants and non-receipt of revenue from commercial drilling services,” KenGen said in a statement.
Finance income more than doubled to Sh. 632 million from Sh. 289 million, driven by interest earnings on the Sh. 6.3 billion it had raised in the rights issue in which the Treasury also converted Sh. 20.1 billion worth of loans into equity.
“There was improvement in interest income … mainly attributable to investment of funds raised during the rights issue in June 2016. The funds are awaiting the implementation of projects in the pipeline,” KenGen said.
