Higher sales lift Total Kenya profit by 22.5pc
French oil marketer Total Kenya announced Friday a 22.5 per cent jump in net profit in the year ended December 31, 2017, boosted by a recovery in the global prices of oil.
The oil marketing firm, which also benefitting from increased output, made a net profit of Sh2.73 billion in the period compared to Sh2.23 billion a year earlier.
“Net sales grew by 25 per cent mainly due to an increase in both sales volume and international oil prices,” said managing director Anne-Solange Renouard in a statement.
“(The increased margins) was also driven by strategic focus on more profitable business segments,” added Ms Renouard.
Total’s profit was however suppressed by a higher foreign exchange loss burden and a surge in operating expenses.
Its currency loss went up by Sh55.9 million or 259.75 per cent in the review period to Sh77.4 million.
Its operating expenses went up 7.6 per cent or the equivalent of Sh466 million to Sh5.4 billion.
“Operating expenses increased mainly due to inflation and impact of depreciation as a result of new investments in the network channel and depots,” said Ms Renouard.
The performance will see shareholders enjoy a 22.64 per cent raise in dividends after the directors recommended a final payout of Sh1.30 per share, up from Sh1.06 the previous year.