Industrial gas manufacturer BOC Kenya says it expects its earnings for the year ending December, 2019, to drop by at least 25 percent due to depressed sales and higher provisioning for debts.
The firm issued a profit warning Wednesday meaning that its full year profits will not exceed Sh52.5 million.
Last year, its profits jumped 77 percent to Sh69.57 million. BOC managing director Marion Gathoga-Mwangi said the firm has witnessed depressed demand for gases, especially from small and medium-sized enterprises owing to tough economic environment.
In addition, the firm says the supply it made to several public sector customers has remained unpaid for “periods significantly above allowed credit period”.
“These overdue amounts have also led to additional doubtful debt provisions,” Ms Mwangi said, adding that high local energy costs hit production costs.
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