KenGen now doubles dividend payout as profit rises 35%
KenGen has more than doubled its dividend per share payout to Ksh0.65 per ordinary share of Ksh2.50 after recording a steady increase in net profit for the year ended June 2024.
The dividend payout will total Ksh4.28 billion, which is more than double the total payout of Ksh1.97 billion it paid out to its shareholders last year at Ksh0.30 per ordinary share.
The Kenyan government is the majority shareholder in KenGen with a 70% stake which will see the National Treasury pocket Ksh2.99 billion while the rest will be shared among the company’s private shareholders.
The increased dividend payout comes on the back of steady performance by KenGen, which has increased its net profit by 35% boosted by a growth in revenue from electricity sales.
The power generator, which is listed on the Nairobi Securities Exchange (NSE), has made a profit after tax of Ksh6.79 billion for the period, marking a growth from Ksh5.01 billion it earned in the year to June 2023.
The firm’s revenue rose to Ksh56.2 billion up from Ksh53.9 billion while costs rose by a near similar margin to Ksh49.5 billion up from Ksh47.9 billion.
KenGen’s finance income more than doubled to Ksh4.2 billion from Ksh1.6 billion even as its finance costs remained steady at KshKsh2.8 billion from Ksh2.7 billion.
“Our electricity units dispatched increased by 4% from 8,027GWh in the previous year to 8,384GWh for the period ended June 30, 2024. This is despite the challenging weather conditions in the first half of the year and the decommissioning of 133.5MW of our fossil fuel-powered thermal plants in Muhoroni and Kipevu,” said KenGen.
The company’s performance received a shot in the arm in the second half of the year due to significant rains that improved hydropower output as well as optimized performance from geothermal.
Going ahead, KenGen is seeking to increase power generation through the construction of the 80MW Olkaria VII geothermal power plant, 42.5MW Seven Forks Solar PV plant and 8.6MW Gogo Hydro plant.
It is also targeting to continue with the rehabilitation of the Olkaria I Units 1,2 and 3 geothermal power plant targeting to increase its output from 45MW to 63MW and extending its operational life by a further 25 years.
It is also progressing in its revenue diversification project through the proposed KenGen Green Energy Park in Olkaria and continued provision of its commercial drilling and consultancy services not only in Kenya but across the region.
KenGen has also announced that its Annual General Meeting (AGM) will be held on November 28, 2024 at 11am.
Ahead of the AGM, the company has appointed Eng Frank Konuche as its Board chairman, replacing Julius Migos Ogamba who was appointed as the Cabinet Secretary for Education in a Cabinet shake-up by President William Ruto in August.
Discover more from THE ENERGY REVIEW
Subscribe to get the latest posts sent to your email.
