KenolKobil posts 19.7 pc profit jump

By O’brien Kimani

Oil marketer KenolKobil has defied bottomed crude oil prices to post a 19.7 percent profit jump though liabilities almost doubled from 8.6 billion to 14 billion shillings last year.

A statement by the company says borrowing increased sharply due to investment in new retail outlets. The company’s net earnings in the period stood at 2.4 billion shillings compared to 2 billion shillings the year before.

Shareholders will get a final dividend payout of 45 cents per share.

KenolKobil’s revenue increased by 19.6% to Ksh 103.5 billion compared to 86.6 billion posted in 2015.

The increase in sales revenue was driven by volume growth of 30% compared to 2015 volumes. The company that has business operations in the six African countries did not indicate how each market performed though some countries like Burundi and Ethiopia witnessed some political turmoil.

The Zambian market was also disrupted by record low currency.

The oil marketer recorded a 19.7 per cent growth in net profit in the year ended December 2016, helped by higher sales and lower finance costs.

KenolKobil also benefited from 45.5 per cent drop in finance cost to 355 million shillings from 651 million shillings.

The group added a total of 30 retail network stations in the year. Profits before taxes increased by 27.16 percent to Ksh 3.5 Billion in 2016 compared to Ksh 2.8 Billion in 2015.

Total Operating expenses went up due to an increase of Ksh 404 million in administrative and operating costs. Impairment provision for KPRL yield shift stood at Ksh 600 million.

Shareholders’ funds increased by 15.3% to stand at Ksh 9.87 billion in 2016 compared to Ksh 8.56 billion in 2015.

The company declared a final dividend of Ksh 0.30/share making the total dividend payment for 2016 to stand at 45 cents per share.