The Kenya Power and Lighting Company Plc (KPLC) has registered an increase in its profit FY 23/24, after a year of loss in the previous period.
According to its latest audited financial statements, KPLC recorded a Sh30.08 billion profit after tax for the year ended 30 June 2024 as compared to a loss of Sh3.19 billion in the previous period.
This performance was primarily driven by an increase in revenue and reduced finance costs due to the strengthening of the Kenyan shilling.
The utility recorded a 21% increase in its electricity sales, standing at Sh231.12 billion FY 23/24 as compared to Sh190.88 billion in the previous period. This can be attributed to a growth in new customers, as the company connected 447,251 new customers to the grid, improving from the 318,217 new customers recorded in the previous financial year.
It was truly a year of improvement, as finance costs decreased by Sh24.84 billion, mainly due to the unrealized foreign exchange gain of Sh7.88 billion. This gain was due to the appreciation of the Kenyan shilling against the US Dollar and Euro, both of which represent a significant portion of the utility’s loan portfolio.
This appreciation of the Kenyan shilling also had an effect on the cost of sales. In addition, to the increased units purchased to support rising demand, power purchase costs increased from Sh143.58 billion to Sh150.61 billion. This is due to them being predominantly denominated in foreign currencies.
KPLC operational costs also increased to Sh46.28 billion, from Sh37.28 billion the previous period. This rise in transmission and distribution expenses was driven by a 9.2% increase in charges for the expanding transmission network and the hiring of additional technical personnel to support business activities. Staff costs were also affected by the implementation of policies from the 2023 Finance Act and inflation-related adjustments.
Despite recording a profit in the year ended 30 June 2024, current assests have reduced to stand at Sh78.05 billion as compared to Sh81.04 billion in the previous period. Current liabilities have reduced as well to Sh105.49 billion from Sh132.28 billion.
Even though the working capital remains negative, it has improved, in comparison to the previous financial year, strengthening its overall financial performance.
The overall performance of the utility has seen its Board recommend to shareholders a first and final dividend of Sh0.70 per ordinary share for the year ended 30th June 2024, subject to withholding tax where applicable, to be paid on or about 31st January 2025, if approved.
