KenolKobil has reported 30% increase in its half year net profit to Ksh 1.19 Billion compared to Ksh 918 Million posted in a similar period in 2015.
The performance was driven by an improvement in gross profit margins of 9.4% up from 7.4% attributed to lower oil prices, 74.2% reduction in finance costs to Ks 98 Million attributed to the repayment of expensive borrowings and lower interest rates. The Oil marketer also posted exchange rate gains of Ksh 39.3 Million against a loss of Ksh 155 million of half year 2015.
READ; Kenol Kobil FY 2015 Pre-Tax Profit Up by 69%
However, revenue dropped by 5.2% to Ksh 36.9billion as a result of lower oil prices but volumes were up by 23%. Shareholder funds increased to Ksh 9.25 Billion from 8.55 Billion.
Future Outlook
The management expects less volatility in the prices of oil and they project prices to be in the range of USD 35-45 for murban crude oil.
Dividends
The company declared an interim dividend of KES 0.15 per share against 2015’s interim dividend of Ksh 0.10. Payment expected to be made on or before 30th September 2016 subject to withholding tax.
