Kenya Energy has issued a revenue warning indicating that its web revenue for the monetary yr ending June 2023 might be at the least 25 per cent decrease than its revenue for the earlier monetary yr.
The corporate earned Sh3.5 billion in revenue after tax within the yr to June 2022 with the revenue alert that was despatched to the Capital Markets Authority (CMA) on Friday, which means the agency sees its earnings fall beneath Sh2.62 billion.
Companies listed on the Nairobi Securities Alternate (NSE) are required by CMA to inform traders and the general public ought to they anticipate their after tax full-year earnings to fall by at the least 25 per cent.
The utility has attributed the anticipated revenue stoop to the speedy depreciation of the Kenyan shilling in opposition to main international currencies which has sharply raised its obligations.
About 90 per cent of the corporate’s mortgage e-book is denominated in international forex which has positioned a higher pressure on its coffers, whereas about 60 per cent of its energy purchases are additionally in international forex.
“The depreciation of the shilling has been the only greatest hit to our earnings this yr. It has an enormous destructive influence on each our on-lent and industrial debt in addition to our energy buy prices,” stated Kenya Energy finance supervisor Stephen Vikiru.
The utility has had a troublesome monetary yr throughout which the 15 per cent energy reduce that was put in place final yr ate into 9 months of the present yr in addition to the continued stoop of the native forex.
Kenya Energy sunk right into a web lack of Sh1.14 billion for the six months to December 2022, a pointy drop from the Sh3.8 billion it had earned in the identical interval in 2021.
The utility’s revenues for the final three months of the present fiscal yr will nonetheless be considerably boosted by the rise in electrical energy tariffs final month regardless that the corporate is weary of additional deprecation of the shilling.
As an illustration, Kenya Energy’s revenues rose by Sh1.3 billion in April partly pushed by the State’s enhance of electrical energy tariffs.
The upturn in income underlines the impact the delays by the power regulator to approve new tariffs for the utility for greater than two years may have had on its backside line.
“On total the revenues had been up roughly Sh1.3 billion though there are a number of dynamics to this not simply the tariff,” Mr Vikiru stated earlier this week.
The corporate has additionally been negatively impacted by the failure by the federal government to pay it an estimated Sh14 billion for the discount in energy costs that lasted for 15 months.
The ability reduce value the corporate an estimated Sh26 billion which was to be shared unequally between Kenya Energy, KenGen, the Geothermal Growth Firm (GDC) and the Kenya Electrical energy Transmission Firm (Ketraco).