Kenyaquotes KenolKobil swings to H1 profit, outlook rosy
Kenya - Corporate - 07-29-2010

Kenyan fuel marketer KenolKobil raised sales in its export markets and the aviation industry to return to profit and is bullish about the second half, the company said on Wednesday. The firm posted a pretax profit of KES 1.73bn (USD 21.5m) after a loss of KES 611m in the same period last year. Net sales jumped 40% during the period to KES 60bn on the back of more stable prices abroad and at home. quoteIncreased focus on high margin business lines has positively impacted the bottom line. Inefficiencies of both the pipeline and refinery in Kenya, however, continue to negatively impact on the performance of the group, particularly on the Kenyan operation,quote the firm said in a statement. The firm, which operates in seven African markets from Zambia to Ethiopia, is embroiled in a dispute with the Kenyan refinery over costs of refining.

KenolKobil said it would not pay an interim dividend as the management awaits the conclusion of some unspecified mergers and acquisitions deals. It announced its entry into Mozambique earlier this week and said it was still keen on Zimbabwe after a failed joint bid for BP/Shellquotes assets in the southern African country. Financing costs doubled in the first half, driven by falls in local currencies in seven markets and especially Kenya, whose shilling currency depreciated sharply against the dollar in Q2, the company said. quoteSubsidiaries continue to perform well with strong performances registered by Zambia and Rwanda, in particular. Management is firmly bullish and projects strong end year results, expected to come mainly from operations outside Kenya,quote it said.

Source: Reuters