, NAIROBI, Kenya, Mar 25 – KenolKobil’s 2014 net profit hit the Sh1billion mark after recording a 95 percent rise from Sh558 million recorded in 2013.
The increase is attributable to continued cost cutting by the company which has lowered financial costs as well as reducing net borrowing.
The firm’s operating costs fell by 25 percent to Sh1.9 billion down from down from Sh2.5 billion recorded in 2013 while cost of sales has reduced by 22 percent to 86.2 billion shillings down from 105 billion shillings recorded in 2013.
Net borrowing reduced by Sh4.2 billion to Sh9.4 billion from 13.6 billion at the end of 2013 a 31 percent reduction while cash generated from operating activities increased by 320 percent to Sh5.4 billion shilling up from Sh1.23 billion in 2013.
“The lower international oil prices during the last quarter of 2014 contributed to lower borrowing levels as well,” the management stated.
KenolKobil’s ‘other income’ however reduced to Sh963 million from Sh1.4 billion recorded in 2013.
The oil marketing firm said that it would continue with its cost-cutting measures this year.
“With the view that international oil prices will continue to remain relatively low during 2015, positive opportunities are anticipated to generate improved margins,” the company said.
KenolKobil’s board proposed a dividend of Sh0.20 per share for 2014 compared to Sh0.10 previously.