Kenya Power revenue for FY2016 up 1.5%

Kenya Power (KPLC) released its fiscal year 2016, or FY16, results on October 29. The electricity distributor reported revenue of Ks108.4 billion, up 1.5% from FY2015. The revenue increase was backed by strong customer growth.

The company reported EPS (earnings per share) of Ks3.87, up from Ks3.81 last year, supported by a 1.7% increase in net profit. 
 

Kenya Power continues to recruit more customers
The chart above shows Kenya Power’s annual revenue for the last five years.
Kenya Power said its customers increased 30% in the latest year and the company expects the growth to remain strong in the coming years. Kenya Power sees improving business environment and the fact that only a small fraction of the nation has mains power supply as some of the growth catalysts. 

Capital expenditure up 18%
Though the rapid customer acquisition signals bright long-term prospects for Kenya Power, the growth is coming at a cost to the company. Transmission and distribution expenses rose 18.3% to Ks28.65 billion in FY2016, the company said. The rise in transmission and distribution expenditure took a hit on the year’s bottom-line as the company reported a 1.4% decline in profit before tax to Ks12.8 billion.

Kenya Power is the country’s sole electricity distributor and its main supplier is KenGen (KENG).
The company will pay an annual dividend of Ks0.50 a share, same as last year.

Kenya Power, with a market cap of Ks17.56 billion, belongs to the Nairobi Security Exchange’s Energy and Petroleum sector alongside KenolKobil (KENO), Total Kenya (TOTL), KenGen and Umeme Limited (UMME).