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Kenya-based electricity distributor Kenya Power and Lighting Company has rebounded from last year’s losses, as profit surged above $13 million in the first half of 2021.
Compared to its losses last year of Ksh939 million ($8.4 million), the Kenya-based electricity distributor reported a profit of Ksh1.49 billion ($13.38 million) in the first half of its 2021 financial year, which ended on June 30.
Meanwhile, revenue grew by 8.4 percent from Ksh133.26 billion ($1.2 billion) in the first half of 2020 to Ksh144.12 billion ($1.3 billion) in the first half of 2021 on the back of increased unit sales from 8,171 GWh to 8,571 GWh, owing to an expanded customer base and increased economic activity.
The triple-digit growth in the company’s earnings was driven by a Ksh9.755-billion ($88 million) increase in electricity sales to Ksh125.93 billion ($1.13 billion), coupled with cost-optimization strategies that led to a reduction in operating costs and finance costs.
Figures contained in the H1 2021 report revealed that operating costs decreased from Ksh47.83 billion ($429.5 million) in 2020 to Ksh39.9 billion ($358.3 million), while finance costs spurred by a lower debt profile dropped from Ksh12.48 billion ($112.1 million) the previous year to Ksh9.1 billion ($81.7 million).
Kenya Power is a public liability company that transmits, distributes and retails electricity to customers throughout Kenya under the leadership of Vivienne Yeda, who was appointed the chairman of the board in November 2020.
In addition to electricity distribution, the company offers optic fiber connectivity to telecom companies through its optical fiber cable network, which runs along its high voltage power lines in the country.
In line with its strong financial performance during the half-year period, the total value of the company’s assets since the start of the year has risen from Ksh325.27 billion ($2.92 billion) to Ksh332.23 billion ($2.98 billion), while shareholder equity increased from Ksh55 billion ($494 million) to Ksh57.2 billion ($513.7 million).
As of press time, Nov.2, shares in the company were trading at Ksh1.98 ($0.01778), 15.8-percent higher than the opening price at the beginning of the year.
