KenolKobil posts Sh2.4bn profit

Oil marketer KenolKobil posted flat growth in its full year earnings weighed down by a one off payment to settle a debt with Kenya Petroleum Refinery Limited (KPRL).

During the year ended December, KenolKobil net profit stood at Sh2.4 billion after completing a one off cost of Sh1.3 billion shillings which ate into its earnings.

KenolKobil grew its revenue by 53 percent to Sh158.7 billion during the year.

Speaking during an investor briefing, KenolKobil group managing director David Ohana said with the debt now settled, the oil marketer is poised for further growth.

“We expect no further provisions or expenses related to these matters,” Mr Ohana said.

The MD expressed confidence that the financial headroom KenolKobil had would propel growth going forward.

“You guys are usually exited by the profit and loss but I am more excited about our balance sheet which has really gotten slim,” he stressed.

KenolKobil has over the past five years been restructuring its books to clear its long term debt which had put pressure on its operations.

Mr Ohana said had the firm not paid the debt, it would have posted a Sh3.4 billion profit for the year.

KenolKobil’s finance costs as at December stood at Sh340.7 million attributed to better inventory and cash management strategies.

Overall, KenolKobil had cleared its long term borrowings with net borrowing standing at Sh3.8 billion at the end of December.

Mr Ohana says the marketer would continue playing a major role in the open tender system used to import oil into the country as it looks to grow its earnings from fuel trading.

KenolKobil opened 20 new fuel stations during the year pushing its regional footprint to 392 stations.

KenolKobil has operations in Kenya, Ethiopia, Uganda, Rwanda, Burundi and Zambia.

Group chairman James Mathenge projected strong growth for the company going forward after restructuring its balance sheet adding that the economic environment across the region was ripe for growth.

“We are also convinced, when you look at the environment, I think electioneering, and stuff like that, probably behind us now, so we are very positive about 2018,” Mr Mathenge said.

The board has proposed a final dividend of Sh0.30 per share which will push this year’s total dividend payout to Sh0.60.