NAIROBI, Kenya, May 11 – Total Kenya has announced a 12 percent drop in pretax profit for the first quarter of 2011, registering Sh273 million for the three months ended March 31.
This compares to Sh308 million recorded during the same period in 2010. Net profit, however, increased marginally from Sh206.4 million in 2010 to Sh206.7 million in 2011.
A reduction in diesel consumption for electricity generation as well as reduced petrol stations led to a drop in sales volume by 19 percent. The company sold 220 KMT in quarter 1 of 2011 as compared to March 2010.
But the rise in international crude prices coupled with a depreciating Kenya shilling was good news for Total Kenya as turnover went up by five percent.
The company says in results released on Wednesday that finance costs decreased by Sh148 million due to a reduction in working capital requirements coupled with competitive interest rates on borrowing compared to the same period in 2010.