NAIROBI, Kenya Mar 5 – Oil marketer Total Kenya’s profits before tax have taken a 29 percent decline to stand at Sh733 million for the year ended December 2009.
The firm posted Sh1 billion profits in 2008.
In a statement, the firm said the slump was mainly due to negative margins recorded in the first quarter of last year, which arose from holding expensive stocks at time when oil prices were falling.
“Crude prices fell sharply from a high of over $100 per barrel in 2008 to $42 per barrel at the beginning of the year,” Total said in a statement.
During the period under review, fixed costs increased by 15 percent mainly due to its acquisition of Chevron Kenya Limited.
The firm however expects the merger to yield good returns this year.
“The directors are confident the company has positioned itself to register improved performance especially in the network and general trade market segments,” the statement said adding “it was however dependent on economic recovery and stability of world crude prices.”
Company assets increased significantly as a result of the merger as a goodwill of Sh6 million was created as the share capital increased by Sh3.8 million.
Finance costs increased by 44 percent to Sh162 million on account of increased financing needs resulting from increased working capital requirements.
The board of directors has recommended a Sh1 dividend payout per ordinary share.