, 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.