PBT down 19%
-Slow down of KE econ
-Increase in financing costs

Electricity sales UP 2.3% to 3,893 GWh
Sales revenue UP 2.5% to Kshs. 46,931 million

Power purchase costs UP to Kshs27,429 million.
-attributed to 2% increase in units purchased, 4,882 GWh

Thermal used increased 47% to 1,301 GWh
-Poor hydrology

Transmission and distribution costs UP 5% to Kshs. 15,814 million
-Higher operational and maintenance costs
-Depreciation

Finance costs UP to Kshs. 3,257 million

Cash balances "decreased significantly duw to aggressive implementation of capital projects"

Company may require government bailout soon.
The debt level and negative cash flow is worrying

[quote=Pesa Nane]

Full results link: https://view.publitas.co...od-ended-31st-dec-2017/[/quote]


Thermal generation is expensive.They could try getting an alternative which will bring value.There is no need of using  kshs 12 billion only to get kshs 11 billion.
Overdrafts facilities is now becoming burdensome.They should look at cheaper options.

Negative cashflow is a worrying sign. I see 5-7 bob printing soon

No need for bailout currently.
The debt level increased by 24% from kshs 229,994,000,000
to kshs 285,153,000,000.
In my opinion this is manageable.
There are some measures the company could do like:
1.Negotiating for cheaper power purchase from sellers e.g kengen and others.
2.They can get fuel at a good price from a good company like kenol and others.
3.Forcing the Gok to pay for transmission and distribution costs of its initiated plans like last mile and street lighting.

Cash flow has increased to negative 7,743,000,000.This is mainly due temporary overdrafts.
They can use the long term debt for these as its repayment will not bring strain to company finances.

They used kshs 12,294,000,000 on fuel to generate thermal.Then they got kshs 11,637,000,000.What is that? They should stop generating thermal.With the 12 bilion they can use 7 billion to ease the cash flow and the balance of 5 billion they can buy cheap power and get more revenue.

Finance income was kshs 52,000,000.These is an avenue which could be grown to generate more income.

Seems you don't understand how kenya power operates. You are better off keeping quiet

with economic growth at >5% to see electricity sales growing at 2.3% means Kenya power is heading for the ICU. I would expect minimum 8% growth in electricity sales for the debt to make sense.

Or may the economic growth is not more than 5%. Power consumption is always a very good proxy for GDP increase unless when there is rationing..So 2.3% sales increase is indeed cause for serious concern.