NAIROBI, Kenya, Aug 4 – KenolKobil has recorded a 30 percent increase in its after tax profit to Sh1.19 billion in the first half of 2016.
In a statement, the company’s board has attributed the performance to positive contributions across the group and from all business segments and the management’s focus on high yield segments.
The company further recorded a 23 percent increase on its sales volumes driven and attributed it to an increase in retail network stations across the group by 20 service stations among other inputs.
Net forex gain stood at Sh39 million, which was against a loss of Sh155 million for the same period last year.
“We are also excited to report an equally impressive gross margin contribution of 9.4 percent up from last year’s first half of 7.5 percent. As a prudent measure, we are taking an impairment provision of Sh400 million against the KPRL yield shift exposure,” read the statement.
At the same time, the board declared the payment of an interim dividend of Sh0.15 per share, up from last year’s Sh0.10.
The oil company’s financing costs dropped by 74 percent owing to the moves such as an effort to reduce the level of borrowing and better inventory management.
Further, shareholders funds increased to Sh9.25 billion up from Sh8.55 billion. “The increase in shareholders’ funds together with reduction in borrowings facilitated the improved gearing ratio of 28.8 percent.”
Going forward the company expects to spur growth in all its segments to safeguard the good returns it has recorded during the period under review.