In a statement sent to media houses, Total Kenya Managing Director Alexis Vovk said that after they reported losses for the half year ended June 30 2012, they instituted a number of measures which bore fruit in the second half of the year.
“This resulted in the complete turnaround of the company to profitability by year end upon finalization of the financial statements and independent audit,” he said.
He pointed out that in their 2011 annual report; a legal claim was lodged against the company in the London courts arising from the 2009 Triton Oil scandal which involved the unauthorized releasing of fuel by Kenya Pipeline Company (KPC) without informing financiers.
The scandal became public in January 2009 and the release of the oil occurred in 2008 when Triton Oil Company was allowed by KPC to withdraw oil amounting to Sh7.6 billion.
The company sold the oil and collapsed shortly afterwards.
Vovk explained that whilst the company has admitted no liability in relation to that claim, Total Kenya settled in March 2013 “in the best interest of procuring a commercial resolution which would also be in the best interest of the shareholders.”
He added that the directors and the independent auditors are in agreement that this must be adjusted in the 2012 accounts, noting that consequently, the company’s results for the full year 2012 will be a loss higher than that reported for the same period in 2011.
“It is important to note that in the absence of this exceptional settlement, the company would have returned a profit,” he said.
“The management is confident that the measures already in place will lead to improved performance in 2013,” he emphasised.