KenolKobil drops 12.91pc after huge loss
Posted Monday, September 10 2012 at 18:45
Listed oil marketer KenolKobil’s share price on Monday dropped 12.91 per cent on news of a Sh3.89 billion half-year loss.
The company’s stock traded at an average price of Sh13.15 Monday from Sh15.10 last Friday.
KenolKobil posted a net loss of nearly Sh4 billion from a profit of Sh2.2 billion in the first half of last year.
The company, which had issued a profit warning, posted heavier losses than market expectations, analysts said.
Standard Investment Bank said expectations of completion of the company’s buyout deal with Puma Energy may have cushioned the stock from a deeper loss. The decline in the share price saw shareholder wealth on the counter drop from Sh22.3 billion to Sh20.4 billion.
“The delay in the completion of the deal with Puma Energy is also making investors take profit given that the stock has done quite well,” said Samuel Gichori, senior analyst at NIC Securities.
The stock has risen by 51 per cent in the past 12 months.