NAIROBI, Kenya, Aug 20 – Industrial and medical gases supplier BOC Kenya Ltd, has registered a 20 percent reduction in profit for the first half of 2009.
The company\’s profit and loss account for the period until June 30 indicates an operating profit of Sh128.3 million compared to Sh164.7 million during the corresponding period last year.
A statement sent to the Nairobi Stock Exchange says turnover grew by four percent due to what the Board of Directors termed as a challenging environment, with the global economic slowdown.
BOC Company Secretary Virginia Ndunge said: “Reduced activity in the region has led to a lower demand for products and the escalating input costs especially power and raw materials have put pressure on the company\’s margins.”
The statement says the company has implemented cost reduction initiatives which will derive savings in the second half of the year and beyond.
The directors have recommended an interim dividend of 40 percent which translates to two shillings for every share held.
The announcement says: “The dividend amounting to Sh39 million to be paid on September 18to shareholders on the register at the close of business on August 28.”
The matter of the take-over offer for the shares of Carbacid Investments Limited is still pending at the High Court of Kenya. The appeal by CMA against the decision of CMA Tribunal is yet to be heard.