Nairobi March 24, 2017 - GDC has announced a 24% increase in turnover. During the 5th Annual General Meeting (AGM), the Chairman of the Board, Mr. Gershom O. Bw’Omanwa announced that GDC’s turnover for the year ended 30th June 2016 increased by 24%, from KES 2.53 billion the previous year, to KES 3.16 Billion. In the year ended 2015 the turnover was less because steam sales began in the course of the financial year.
“GDC continues to earn revenue from the sale of the 320MW of steam in Olkaria to KenGen which is used to run the two new power plants and several wellhead generation units,” announced the Chairman. In 2014, GDC signed a steam sales agreement with KenGen for the sale of steam from GDC's 59 wells. In addition to steam sales revenue, GDC gets funding for its operations from the exchequer and development partners.
“GDC made a profit of KES 287 million compared to KES 1.6 billion last year. The drop is attributed to increased operational expenses in the year ended 30th June 2017,” noted the MD & CEO Eng. Ole Nchoe.
The Auditor General gave the GDC accounts an unqualified opinion. “In my opinion, the financial statements present the financial position of the Geothermal Development Company limited as at June 30th 2016, and of its financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards, and comply with the Companies Act, 2015 of the laws of Kenya,” said the Auditor-General’s Report read during the AGM.
“The future of GDC is bright with the planned ground breaking for the construction of 105MW power plants in Menengai,” noted the MD & CEO Eng. Johnson P. Ole Nchoe during the meeting. GDC has contracted three independent power producers through a competitive international open tender. Each of the three contracted firms will build and operate a 35MW geothermal power plant for 25 years. Once the 105MW power plants are commissioned, GDC will be earning an additional Kshs 1.7 Billion in annual steam sales revenue.
During the AGM the Chairman noted that with a revamped top management who reported to work about a month ago, the quest for affordable reliable and green energy has received a shot in the arm.
One thing that sets GDC apart from other companies undertaking geothermal electricity generation in Kenya is the unique model that combines the resources of a state owned entity (SOE) and those of the private sector, with the aim of accelerating the geothermal development process.
Upon completion, GDC’s 105MW Menengai Phase I Geothermal Project will be the fastest developed in Kenya. This is because drilling started in 2011 and by 2018, a total of 105MW of electricity will be connected to the national grid within a period of less than 10 years. In the past, geothermal projects in Kenya have taken way over 10 years from conceptualization to power generation because the same Company undertook to handle the whole value chain from drilling to power plant construction. GDC’s innovative model of involving several players in various stages of the value chain is a big boost in the quest for accelerated development of geothermal resources.