TotalEnergies Marketing Kenya has raised its dividend payout by 46.5 percent to Sh1.92 per share totalling Sh336.1 million on increased profit for the financial year ended December 2023.
The proposed dividend is a rise from Sh1.31 per share or Sh229.3 million the oil marketer paid in the previous year. The increased dividend is on the back of net profit rising 23.6 percent to Sh4.62 billion from Sh3.8 billion. The firm said it plans to pay the dividend on or around July 31 to shareholders on the register as of June 27.
TotalEnergies’ net revenue hit Sh120.7 billion, being a 17.4 percent growth from Sh102.8 billion recorded a year earlier.
Other income increased to Sh2.07 billion from Sh1.58 billion. TotalEnergies attributed the 31 percent rise to investing activities, increased revenues from diversified investments in shops, food and services and income from partnerships with third parties.
Operating expenses, however, rose 12.9 percent to Sh8.04 billion during the review period partly on the weak shilling against foreign currencies.
“The increase in operating expenses was majorly attributable to inflation impact on local costs coupled with forex impact on imported goods and services due to depreciation of local currency,” said TotalEnergies in a commentary accompanying the financial results.
Finance costs, for instance, rose 2.5 times to Sh2.32 billion from Sh919.9 million.
TotalEnergies said the increased costs of servicing loans was as a result of high working capital requirements during the year, coupled with the increased cost of borrowing.
During the year, the company booked foreign exchange losses amounting to Sh385 million, compared with the previous year when it booked a gain of Sh147 million. The forex loss was attributable to the depreciation of the local currency in the year when the shilling shed about a quarter of its value against the dollar.
Total says the business environment remains challenging due to the volatility and high levels of global fuel prices.
“Despite this particularly challenging context, the Company is expected to continue growing its business in the country due to its vast experience in the energy industry and a broad range of products and services,” said the company.
TotalEnergies added that it will continue to increase its focus on renewable energy sources and sustainable solutions to meet the growing demand for clean energy in Kenya.
