Oil marketer Total Kenya #ticker:TOTL has seen its net profit for the six months to June increase by a third to Sh958.2 million mainly due to higher sales.
Total, which is listed at the Nairobi Securities Exchange (NSE) #ticker:NSE, say its sales for the period under review stood at Sh71.8 billion, representing a Sh22.9 billion increase from Sh48.9 billion last year.
The firm’s cost of sales however increased 54 per cent to Sh54.5 billion while indirect duties and taxes also went up by Sh3.2 billion to close the period at Sh13.1 billion.
Total’s operating expenses stood at Sh2.9 billion, representing an 18 per cent increase from Sh2.5 billion posted during a similar period last year.
“This good performance is attributed to the efforts and action plans set by management and the board of directors,” Anne-Solange Renouard, the firm’s managing director, said in company filings Wednesday.
“Net sales increased 51 per cent mainly due to increase in international oil prices. Net finance income of Sh142 million for the period resulted from effective management of working capital resulting in a positive cash position,” she added.
While crude prices have slid since the beginning of the year as OPEC and Russia struggle to implement an accord to limit output, they are still considerably higher than one year ago.
Total’s other income increased by Sh35 million (to Sh431.8 million) as a result of increased activities in non-fuel business channels.
The directors of the board have not recommended payment of an interim dividend.
“Even though the Kenyan shilling slightly depreciated over the period (first half), management remains optimistic in a conducive economic environment during the second half of the year which will enable the company pursue a good performance by the end of 2017,” said Ms Renouard.