Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Energy

Kenol Kobil grows profit to post Sh2.4Bn profit on higher volumes

The group added a total of 30 retail stations during the period significantly contributing to the bottom line/FILE

NAIROBI, Kenya, Mar 8 – Kenol Kobil has declared a net profit of Sh2.41 billion for the financial year ended December 31, 2016, a 20 percent increase from the Sh2.01 billion in 2015.

The oil company recorded growth in all segments of its business with sales revenue growing by a similar margin. Gross profit jumped 13 percent to Sh4.77 billion from Sh4.21 billion in 2015.

Kenol Kobil Managing Director David Ohana says the group added a total of 30 retail stations during the period significantly contributing to the bottom line.

Retail sales accounted for 55 percent of revenue, contributing 68 percent of gross profit while export, trading and aviation contributed 41 percent of sales.

The company, Ohana says, has also made some gains as a result of the current drought which has increased demand for fuel to power generators.

“The management has been quite aggressive and focused in solidifying the company’s position in the markets we operate in so as to guarantee the shareholders good returns in future,” said Ohana.

Ohana says net debt levels remained subdued across the year despite the increase in international oil prices, significantly reducing net financing costs by 54 percent in comparison with previous year results, “to safeguard the interest of the shareholders.”

“The Zambian Kwacha was the most erratic in the markets we operate in but we managed to turn around a forex loss of Sh232 million in 2015 to a profit of Sh2.5 million by putting in place a strategy which realized a net gain to the group and mitigated against losses realized in other markets,” explained Ohana.

The company has announced a dividend of Sh.0.30 per share, totaling a final dividend of Sh0.45 per share, an increase of 29 percent from the previous year.

Moving forward, Standard Investment Bank analysts see increased capital expenditure in expansion in Zambia and Kenya, with subdued growth in Burundi especially with foreign exchange conversion.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...