Total Kenya records a 50.3 % pre-tax profit rise
Total Kenya has announced a 50.3 percent increase in pre-tax profit of Kshs 3.94 billion for the year ended December 31, 2016.
The rise in pre-tax profit from Kshs 2.62 billion reported at the end of 2015 has been driven by prudent cost management and sustained operational efficiency.
“The improved financial performance has mainly been driven by action plans set by management to grow the business in all segments, effective management of working capital requirements, costs, cash, and investments in safety and profitable business ventures,” said Total Kenya Managing Director Anne-Solange Renouard.
The listed firm on the Nairobi Securities Exchange said its total assets increased from Kshs 34.22 billion in 2015 to Kshs 36.18 billion last year.
Profit after tax increased by 38 percent from Kshs 1.62 billion in 2015 to Kshs 2.23 billion.
The drop in international oil prices led to a decrease of 26 percent in net sales. The effective cost of sales management and a stronger focus on more profitable business segments in 2016 led to an increase in Gross margins by 12 percent from Kshs 6.99 billion in 2015 to Kshs 7.85 billion last year.
The leading oil and gas marketer in the country said other income increased by Kshs 197 million as a result of growth in rental income and non-forecourt activities.
“As a key objective set by management, operating expenses were closely managed and were controlled at below inflation growth. Net finance income grew by Kshs 36 million resulting from effective cash management,” Anne-Solange Renouard said at her office at Regal Plaza along Limuru Road.
Due to the stability of the Kenya shilling against the US dollar, the forex loss was lower at Kshs 22 million compared to Kshs 320 million in 2015.
Investments in long-term assets totaling to Kshs 1.54 billion were made in the year, in line with the strategy to develop the business in the core activities and to continue to tap into business opportunities. This was done in full compliance with the safety and environmental requirements and standards.
She said the macroeconomic environment remained quite stable last year compared to the volatile 2015 with both petroleum prices and the Kenyan shilling contributing to the stability.
The Directors have recommended the payment of a first and final dividend of Kshs 1.06 per share for the year compared to Kshs 0.77 per share paid in 2015. This proposed payout represents an increase of 38 percent as compared to 2015 and is subject to the shareholder’s approval at the 63rd Annual General Meeting to be held on June 16, this year.
With Kenya’s economic growth expected at around 6 percent in 2017, the Board is confident that the Company is well placed to take advantage of business opportunities owing to sustained investments, skilled workforce and its wide network footprint.