KenolKobil Limited a downstream oil marketer posted strong full year earnings for the period ending 31 December 2016. Profits before taxes increased by 27.16 percent to Ksh 3.5 Billion in 2016 compared to Ksh 2.8 Billion in 2015.
The company’s revenues increased by 19.6% to Ksh 103.5 billion compared to Ksh 86.6 billion posted in the previous period. This increase in sales revenue is due to volume growth of 30% compared to 2015 volumes. The company added a total of 30 retail network stations during the period.
In a statement Kenol Kobil highlighted that they are aware and monitoring the current market conditions and pointed out 2016 began with low Murban Crude oil prices as low as USD 30/Barrel then later went up to the USD 50/Barrel level. The company is focused in implementing strategies which are advantageous to the company in view of the international market.
Gross Margins improved to 7.1 percent in 2016 compared to 6.7% in 2015. Management highlighted the higher return was due to investing in areas where returns were justifiable.
Total Operating expenses went up by due to an increase of Ksh 404 million in administrative and operating costs. Impairment provision for KPRL yield shift stood at Ksh 600 million.
Net Financing costs were slashed by more than half to stand at 54% which the company highlights is an effort placed in safeguarding shareholders’ interests.
Shareholders’ funds increased by 15.3% to stand at Ksh 9.87 billion in 2016 compared to Ksh 8.56 billion in 2015.
The company declared a final dividend of Ksh 0.30/share making the total dividend payment for 2016 to stand at Ksh 0.45/share an increase of 28.57% from Ksh 0.35 declared in 2015. Total dividend amount is Ksh 662.3 million.
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Top Institutional Holders at Kenol Kobil are:
- Pioneer Investment Management Ltd (UK) holding 111.25 million shares
- Parametric Portfolio Associates LLC holding 10.29 million shares
- Old Mutual Investment Group (Pty) Ltd holding 8.58 million shares
- Robeco Institutional Asset Management BV holding 3.00 million shares
- Wallberg Invest SA holding 500 thousand shares
- JPMorgan Asset Management (UK) Ltd holding 15.4 thousand shares
On the markets Kenol Kobil was last spotted trading at Ksh 13.95 per share this is down by 6.7% year-to-date. It is also down by 11.15% from its 52 week high of Ksh 15.70 per share set on Nov 28, 2016. Will it hit those levels again?
