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Corporate

Total Kenya’s net profit up 38per cent on higher margins, lower forex loss

A Total fuel station. Total Kenya has booked a 37.6 per cent growth in net profit for the year ended December 31, fuelled by higher rental income from its property and a lower foreign exchange loss burden. FILE PHOTO | NMG
A Total fuel station. Total Kenya has booked a 37.6 per cent growth in net profit for the year ended December 31, fuelled by higher rental income from its property and a lower foreign exchange loss burden. FILE PHOTO | NMG 

Total Kenya reported a 38.3 per cent net profit growth in the year ended December 2016, helped by better margins.

The oil marketer made a net profit of Sh2.2 billion in the period compared to Sh1.6 billion a year earlier.

This came as the gross profit margin improved to 8.8 per cent from 5.8 per cent in what the company attributed to lower costs.

“The improved financial performance has mainly been driven by action plans set by management to grow the business in all segments, effective management of working capital requirements, costs, cash, and investments in safety and profitable business ventures,” Total Kenya managing director Anne-Solange Renouard said in a statement.

“As a key objective set by management, operating expenses were closely managed and were controlled at below inflation growth.”

The performance will see shareholders enjoy a 37.6 per cent raise in dividends after the directors recommended a final payout of Sh1.06 per share, up from Sh0.77 the previous year.

Total’s profit was also boosted by higher rental income from its property and a lower foreign exchange loss burden. It cut its currency loss by Sh298.8 million or 93 per cent in the review period to Sh21.5 million.

Rental income rose by Sh197 million to Sh962.9 million.

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