Kenya Pipeline Company Announces Ksh 10 Billion Profit

The Kenya Pipeline Company (KPC) has reported KES 10 billion profit before tax for the 2023/2024 financial year, compared to Ksh 7.6 billion achieved in the previous fiscal year, representing a 32% increase.

The strong performance is attributed to a 15% increase in revenue from KES 30.9 billion in the last financial year to KES 35.4 billion in the year ended June 2024, driven by higher sales volumes and favourable forex rates.

In FY 2023/24, total throughput volumes grew by 6% to 9.1 million cubic meters (M3), up from 8.6 million M3 last year. Domestic throughput volumes slightly increased by 0.1% to 4.5 million M3, while export volumes surged by 12% to 4.7 million M3, reflecting KPC’s enhanced operational capacity and commitment to customer demand.

KPC Board Chairman Mrs. Faith Bett–Boinett has credited the outstanding performance to enhanced operational efficiency. “Our strategic outlook has evolved with the revision of our Corporate Strategic Plan to Vision 2025. This forward-thinking approach ensures that KPC remains aligned with the dynamic market environment and continues to fulfill its strategic imperatives. Our recent acquisition of ISO Integrated Management System (IMS) underscores our commitment to maintain the highest standards of operational excellence and compliance with international benchmarks” she said.

Read Also: Kenya Pipeline Set To List At The NSE

On his part, Managing Director Joe Sang emphasized the company’s dedication to driving sustainable growth and innovation. ‘‘Looking into the future, KPC remains dedicated to driving sustainable growth and innovation. We will continue to invest in our people, infrastructure, and technology to ensure that we not only meet but exceed the expectations of our customers and stakeholders. The next phase of our journey will be guided by the same principles of excellence, resilience, and vision that have brought us this far’’ he said.

Sang also revealed that KPC has completed the acquisition of the Kenya Petroleum Refineries Limited (KPRL), which has been operated by KPC under a lease agreement since the year 2017, underscoring the strategic importance of leveraging KPRL’s fuel storage assets to drive Kenya’s position as a regional oil and gas hub.

KPC continues to increase operational efficiency by investing in capital projects like; Leak and intrusion detection and the Supervisory Control and Data Acquisition (SCADA) system, Line IV (Nairobi- Eldoret) capacity enhancement, and Nairobi Terminal (PS10) bottom loading facility.

In addition to growing its main revenue stream (transportation and storage of petroleum products), KPC is also exploring alternative revenue streams such as Fiber Optic Cable (FOC), Morendat Institute of Oil and Gas (MIOG), and investments in Liquefied Petroleum Products (LPG).

Read Also: Kenya Pipeline Company Registers a Net Profit of 8.4 Billion Shillings