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Ngunze releases last KQ results at helm

MBUVI

Outgoing Kenya Airways chief executive Mbuvi Ngunze during a past media briefing. FILE PHOTO | NMG

Mbuvi Ngunze will Thursday morning release Kenya Airways’ #ticker:KQ full-year results for the last time as CEO of the national carrier, paving the way for the entry of new Polish chief executive Sebastian Mikosz who is set to replace him in a week.

Mr Ngunze has during his tenure announced two Kenya Airways results — a Sh25.7 billion net loss in 12 months to March 2015 (after five months in charge) and Sh26.2 billion loss a year later.

The Kenya Airways boss leaves at a time when implementation of a turnaround strategy that involves balance sheet restructuring, sale and leasing of aircraft, the sale of land and retrenchment of some employees is underway.

The turnaround is aimed at pulling the national carrier from the red.

Aly-Khan Satchu, an investment analyst, believes that Mr Ngunze “did the much he could, given the company he inherited”.

He says the incoming CEO’s priority should be to make sure that the turnaround plan works to restore investor confidence in the NSE-listed airline.

“Kenya Airways needed radical surgery when Mr Ngunze inherited it. The company was in a difficult place. He did not achieve this, but I think he did well to steady the ship,” Mr Satchu said in a telephone interview.

“He made some difficult but necessary decisions such as retrenchments. I hope the results he releases (today) will give investors hope that a turnaround is at hand.”

READ: KQ picks austerity hawk for big turnaround task

Kenya Airways, known as KQ by its international code, showed signs of stabilisation in results released at the half-year to September.

The airline reduced its net loss by more than half to Sh4.8 billion on the back of deep cost-cutting.

KQ’s decision to sell and sub-lease aircraft reduced its fleet ownership costs by Sh4.6 billion to Sh8.5 billion. These savings compensated for a 3.5 per cent dip in revenue to Sh54.7 billion.

The carrier reported an operating profit of Sh900 million but closed the period in a negative equity position of Sh38.9 billion.