Kenya Pipeline Company (KPC) registered a 16.7 percent increase in their net profit for 12 months through June 2016 leading to a net profit of 8.4 billion shillings, up from 7.2 billion shillings in the previous financial year.
The increase in profits was said to have been as a result of improved fuel supply and a prudent cost management strategy that they have in place.
“The company’s growth has been underpinned by strategic initiatives around prudent cost management and efforts to enhance fuel supply in Kenya and the region,” said managing director Joe Sang.
The company also registered a minimal two percent growth in fuel transport volumes to 5.9 million metric tons from 5.7 million metric tons in 2014/15. On the domestic front, fuel transport volumes rose by seven percent from 2.9 million metric tons to 3.1 million metric tons.
However, the export volumes decreased by three percent to 2.7 million metric tons from 2.8 million metric tons. Revenue from transportation of fuel increased 7.5 percent to 23 billion shillings from 21.4 billion shillings.
Volumes handled domestically increased by 6.9 per cent from 2.9 million metric tons to 3.1 million metric tons.
On the other hand, the firm underwent a 3.5 percent year-on-year decline in export volumes to 2.7 million metric tons from 2.8 million metric tons which came about due to increased competition on the Central Corridor.
Sang noted that they introduced a promotional tariff last month on all transit products in all the western Kenya depots with the aim of improving the Kenyan market share in the regional petroleum trade
“We introduced a 29.95 percent discount on transit oil products on our western route in a bid to stave off competition from Tanzania,” said Sang.
KPC’s Chairman John Ngumi disclosed that the company is working on a plan to expand its services to cover the greater Eastern African region offering transport and storage services including LPG bottling and storage, and utilization of Lake Victoria to transport products to the region.