October 23, 2018

Kenol Kobil Profit Soars to 95 Percent

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By Charles Gitonga
Oil marketer Kenol Kobil has announced a net profit of Ksh.1 billion for the year 2014, a 95 per cent rise compared to Ksh.558.4 million recorded in the previous year.
Kenol Kobil almost doubled its profits despite a 16.5 per cent dip in sales to Ksh.91.3 billion from Ksh.109.6 billion. The marketer attributes the performance to cost cutting measures entrenched in a restructuring program it began in 2012.
Its operating costs came down 25 per cent from Ksh.2.5 billion in 2013 to Ksh.1.9 billion in 2014, positioning it for stronger growth. “We’re well placed to generate continued strong performance supported by organic growth initiatives in Kenya, and subsidiaries which resulted from takeovers of 37 new petrol stations in 2014,” said David Ohana, Kenol Kobil Group Managing Director
During the year 2014, Kenol Kobil paid off all its dollar denominated debt, reduced its local borrowing and renegotiated existing debt, which led to a 22 per cent reduction in financing costs, lifting the firm’s profit before tax to Ksh.1.52 billion.
The results are a transformative move for the firm having come from a Ksh.6.4billion loss two years ago. Its future growth, the company says, is pegged on focusing on high margin products like lubricants and liquefied petroleum gas (LPG).
Kenol Kobil declared a dividend pay-out of Ksh.0.20 per share.

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