NON-FUEL COSTS

Kenya Power issues profit warning for 2019 results

The drop attributed to increase in non-fuel costs in line with its long term strategy.

In Summary

• He added that under the firm’s long strategy, cost of energy to consumers will be reduced and ensure long term profitability for the firm.

• Last year, the power distributor also issued profit warning before posting a 63.7 per cent decline in net profit to Sh1.92 billion on higher costs.

Kenya Power engineers carry out maintenance work at a power Sub station in Mombasa.
Kenya Power engineers carry out maintenance work at a power Sub station in Mombasa.
Image: FILE

Kenya Power’s profits for the year ended June 30 will be down by more than 25 per cent compared to the corresponding period last year.

In a public notice, the power distributor has attributed the drop to among other things, an increase in non-fuel costs in line with the company’s long term strategy of growing cheaper and cleaner renewable energy.

"We wish to inform shareholders and the general public that the company’s net profit for the financial year ended June 30, 2019, are projected to decline by more than 25 per cent of the net earnings reported last year," Kenya Power acting MD Jared Othieno said.

 

He added that under the firm’s long strategy, cost of energy to consumers will be reduced and ensure long term profitability for the firm.

Last year, the power distributor also issued profit warning before posting a 63.7 per cent decline in net profit to Sh1.92 billion on higher costs.

It said the performance was constrained by the depressed economic environment, poor hydrological conditions in 2017 and the protracted electioneering period.


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