Kenya’s KenGen Jumps Most in 11 Months on Profit: Nairobi Mover
Kenya Electricity Generating Co. (KEGC), the country’s biggest electricity producer, rose the most in more 11 months after saying full-year earnings grew 33 percent.
Shares in KenGen, as the company is known, climbed 6 percent to 8.85 shillings by the close in Nairobi. This is the biggest advance since Oct. 27, 2011 and the highest level since June 28.
“Year on year net profit grew 33 percent and it is partly the reason why the shares are rising,” Kuria Kamau, a research analyst at Nairobi-based Kestrel Capital (East Africa) Ltd., said in a phone interview today.
KenGen’s net income in the 12 months through June was 2.8 billion shillings ($32.8 million) compared with 2.1 billion shillings a year earlier, it said yesterday. Revenue climbed to 16 billion shillings from 14.4 billion shillings.
The company has secured financing to build power plants, some of which it plans to commission by June 2013, it said.
“Successful execution of the geothermal and wind projects may result in significant growth in revenues and lower generating costs for the company,” Kestrel said today in an e- mailed note to clients.
To contact the reporter on this story: Eric Ombok in Nairobi at firstname.lastname@example.org.
To contact the editor responsible for this story: Shaji Mathew at email@example.com