NAIROBI, Oct 15 (Reuters) - Kenya Electricity Generating Company (Kengen) KGEN.NR reported a 65 percent drop in annual pretax profit on Wednesday, but said tax deferment had allowed its net profit to double.
It blamed the pretax fall for the year ending June 2008 on the strengthening of the Japanese yen against the Kenya shilling. Kengen holds yen-denominated loans.
Net profit doubled on deferred tax payments of 3 billion shillings ($39.58 million), the firm said in a statement.
Pretax earnings were 1,628 million Kenya shillings from 4,719 million before and the net profit was 4,809 million shillings from 2,445 million the previous year.
Kengen, which produces more than 80 percent of the electricity for east Africa’s biggest economy, said sales grew by 4.8 percent in the year and that it expected demand to keep growing in step with the country’s growth.
“Anyone who is just looking at the bottom line will be happy. Their cash flow also shows a good story,” Leah Nyambura, a Dyer & Blair analyst, told Reuters. (Reporting by Duncan Miriri; Editing by Daniel Wallis, Paul Bolding)