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Kenya

Profits overflow at NOCK

NAIROBI, Kenya, Apr 7 – The National Oil Corporation of Kenya (NOCK) has announced a 946.7 percent rise in profit before tax to Sh116 million for the half year ended December 2010.

NOCK Managing Director Sumayya Athmani said on Thursday that the performance was driven by an increase in sales volumes, which grew by over 18 percent to 133 million litres surpassing the targeted 113 million litres.

"During the period under review, turnover rose to Sh9.5 billion from Sh6.5 billion, representing a 46 percent leap over the previous year," she said.

Ms Athmani who was confirmed as Managing Director and Chief Executive Officer on Tuesday said they expect a better performance in the second half of the year owing to their expanded retail network.

At the same time, she disclosed that the corporation had finalised a pilot programme in Kawangware aimed at reducing the kerosene supply chain which result in a lower prices for the commodity.

Currently, a litre of kerosene sells at Sh76 compared to Sh84 charged by most oil marketers, and plans to replicate the project across the country are underway.

"Of all the petroleum products, due to its wide use especially in domestic cooking and lighting, kerosene, has the lengthiest supply chain which often creates opportunities for middlemen to exploit consumers" said the Managing Director.

This is one of the initiatives the corporation has embarked on to reduce fuel prices as it works to fulfil its mandate to stabilise fuel prices in the country.

"Of all the petroleum products, due to its wide use especially in domestic cooking and lighting, kerosene, has the lengthiest supply chain which often creates opportunities for middlemen to exploit consumers" she said.

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Under this project, the corporation has partnered with Entrepreneurship for Youth Empowerment Kenya to create an alternative channel to deliver kerosene and liquefied petroleum gas in various parts of Nairobi.

The programme is also equipping kerosene retailers with whom National Oil is partnering with, skills to enable them manage their business more effectively, handle the kerosene safely while also linking them with microfinance lenders who can support them to grow their businesses.

The oil marketer is also increasing the number of its retail outlets across the country to expand its footprint in order to reach more underserved areas.

She was upbeat that these initiatives would continue sustaining the corporation\’s growth momentum.

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