Oxygen demand pushes BOC profit to Ksh.102M

Oxygen demand pushes BOC profit to Ksh.102M

Medical gases manufacturer BOC Kenya has announced a near double growth in earnings with its full year profit to December 2020 rising to Ksh.101.7 million from Ksh.55.9 million.

The 82 per cent profit surge is on the back of a surge in the demand for medical gases such as oxygen from the advent of the COVID-19 pandemic.

The growth in the demand for oxygen has pushed BOC annual revenues to Ksh.1.1 billion from Ksh.975.9 million in 2019.

“The upside in results for the full year was primarily from medical gases, a revenue stream that has shown consistent growth over many years due to the increased investments in both public and private sector healthcare facilities. COVID-19 accelerated this investments in 2020 with the benefit of improved healthcare for the population expected to accrue well past the pandemic,” the company stated.

The company’s industrial gases segment nevertheless remained depressed with BOC citing price-sensitiveness among its mass market made up largely of the Juakali industry.

BOC Kenya is currently the subject of a conflicted acquisition process by its peer Carbacid Investment with the latter seeking to consolidate its market position as an industrial gas manufacturer and distributor in the region.

The board of BOC recently froze the takeover process pending directions from the Capital Markets Authority (CMA) following a petition challenging the transaction.

Subsequent to the strengthened profitability, the board of company has recommended the the payment of a Ksh.4.15 dividend shareholders from Ksh.2.35 last year.

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