Total Kenya reported an increase of 23 percent in profit after tax of 2.74 billion shillings for the year ended December 31, 2017.
The rise in profit after tax has been driven by growth in sales volumes, venturing in non-fuel activities, effective cash management, sustained operational efficiency and prudent cost management.
“The financial performance for the year has resulted from the strategies put in place 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’s Managing Director Anne-Solange Renouard.
The listed firm on the Nairobi Securities Exchange said its assets increased from 36.18 billion shillings in 2016 to 38.01 billion shillings last year. “The company continued to invest substantially to tap the emerging business opportunities and enhance safety operations.”
The development in sales volumes coupled with an upward trend in international oil prices led to an increase of 25 percent in net sales. The gross margins increased by 5 percent from 7.85 billion shillings in 2016 to 8.25 billion shillings last year.
The Managing Director further said that other income increased by 131 million shillings as a result of management’s pursued strategy of development in non-fuel activities.
As a result of the depreciation of the Kenya Shilling against the US dollar in the second half of the year, the Company suffered from a foreign exchange loss of 77 million shillings during the year (2016: 22 million shillings).
Investments in long-term assets totaling t 2.27 billion shillings 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, environmental requirements and standards.
The Directors have recommended the payment of a first and final dividend of 1.30 shillings per share for the year compared to 1.06 shillings per share paid in 2016.
This proposed payout represents an increase of 23 percent as compared to 2016 and is subject to the shareholders’ approval at the 64th Annual General Meeting to be held on 27 June 2018.
Given Total Kenya’s sustained investments, skilled workforce and its wide network cover, the Board is confident that the Company is well placed to take advantage of business opportunities arising from the expected economic stability and increased infrastructural developments.