Vivo Energy Kenya and TotalEnergies Marketing Kenya posted a combined jump of Sh10.69 billion in revenues in the half year ended June, even as fuel consumption slightly dipped.
Disclosures show Vivo Energy made Sh110.29 billion in revenues compared to Sh108.8 billion in the first six months to June last year while TotalEnergies recorded gross sales of Sh74.6 billion from Sh65.4 billion in a similar period.
The rise in Vivo Energy’s revenues was driven by the weakening shilling given that in dollar terms, revenues dipped to $785 million in the half-year to June from $924 million in the same period last year.
The rise signals the impact of the duo’s dominance given that the increased revenues came in a period when demand for fuel fell on rising pump prices.
The two firms, like other marketers, have been hurt by the free-falling shilling, which has made the cost of servicing their dollar-denominated loans more expensive.
“During the period, the business environment remained challenging due to volatile macro-economic factors,” TotalEnergies says in its half-year report.
“International oil and gas prices declined while local currency depreciated against the dollar due to global shifts in macro-economic situations.”
Rubis said it made revenues of Sh68.4 billion (448 million euros) in the six months to June. The firm did not however disclose the revenues for a similar period last year.
Consumption of super petrol dropped five percent to 1.01 billion litres between January and June from 1.074 billion litres a year earlier while that of diesel fell four percent to 1.31 billion litres from 1.36 billion litres.
The drop in consumption came against the backdrop of rising pump prices per litre as super petrol increased by Sh2 from March while that of diesel rose by Sh8 from May. Vivo is the market leader in Kenya with a share of 22 percent as at December last year, followed by TotalEnergies at 16.39 percent and Rubis (10 percent).
A weakening shilling has amplified the forex losses that oil marketers have taken since last year, prompting them to flag the growing risk in Kenya and other markets like Nigeria.
“The half-year was marked by extreme currency tension in Kenya and Nigeria, peaking in the latter country with a 50 percent devaluation of the naira on June 8, exacerbating the exchange rate losses recorded during the half-year,” Rubis says in its half year report.