Kenya Power, KenGen delay financial results
Electricity distributor Kenya Power and power producer KenGen have delayed the release of their financial results for the year ended June 30, 2020 which were due on Friday.
In a pair of statements issued earlier on Friday, the two firms have attributed the delay to the late appointment of the Auditor General which has subsequently delayed the audit of their annual books.
The two companies are further expected to delay the convening of their respective annual general meetings (AGMs) whose pre-requisite is usually the publishing of annual trading results.
The late appointment of the auditor general saw the pair relay late results for the previous financial year as the auditor’s post remained unoccupied for nearly one year to July this year.
The delay in the publishing of results is expected to leave investors in the dark over the performance of listed companies audited by the Auditor General which include the East African Portland Cement (EAPC).
Kenya Power and KenGen however harbour contrasting results with the latter being the profitable entity.
Inflated cost saw Kenya Power post a near profit work out in the last financial year as profit declined by 91 per cent to a mere Ksh.262 million.
The trend of poor results continued in the half year period to December 31, 2019 as Kenya Power booked a 72 per cent profit decline to Ksh.693 million.
In its most recent audit, the Office of the Auditor General termed Kenya Power as an ongoing concern as its current liabilities continue to outpace current assets pointing to a looming distress.
Additionally, the audit report fingered the company’s reforms to contain skyrocketing costs saying they have not had their desired effect.
In contrast, KenGen doubled its half year earnings to Ksh.8.2 billion in December on greater electricity sales and lower financing costs in the period.
Kenya Power has indicated plans to published its annual results on or before January 31, 2021.