Kenya Power and Lighting Company (KPLC) has recorded a 16 percent drop in their half year profit from Ksh2.9 billion in 2017 to Ksh2.45 billion for July to December, 2018.
In a statement published in a local daily, the company noted that electricity sales grew by 21.4 percent to Ksh56.96 billion.
Additionally, the results showed that the profits were pulled down by a four percent growth in operating expenses to Ksh61.7 billion from Ksh59.3 billion.
KPLC’s acting managing director Jared Othieno further noted that even with the decreased profits, the company still continues to work on improving its efficiency.
“The company continues to undertake initiatives to improve customer satisfaction, enhance efficiency in business operations and grow our revenue.
We are transforming customer experience by improving operations at customer touch points, simplifying processes for efficient service delivery and embedding positive organizational culture,” Jared noted.
The company still remains in negative working capital with their current liabilities being 1.9 times higher than the current assets, pointing to pressure in honoring short term obligations.
The firm is also in breach of debt covenants.
Finance costs rose by 23.5 percent to Ksh4.02 billion from Ksh3.25 billion an indication that there has been an increase in borrowing.
Due to its current numbers, the company’s board did not recommend any interim dividend against this performance.
During their full year results ended June 2018, the board did not also recommend any interim as the company hit 10-year low.
Kenya Power’s total debt is Ksh.87 billion while Ksh6.8 billion is repayable in under 12 months.