KPC remits Sh7b in dividend to Treasury as profit rises to Sh10b

From left: Energy CS Opiyo Wandayi (second right), Kenya Pipeline Company MD Joe Sang (left), KPC Chairperson Faith Boinett and PS Mohamed Liban during a tour of KPC storage facilities in Nairobi, on August 21, 2024. [File, Standard]

The Kenya Pipeline Company (KPC) has reported Sh10 billion profit before tax for the 2023/2024 financial year, a 32 per cent increase from Sh7.6 billion achieved in the previous fiscal year.

The State-run pipeline and oil storage firm also reported a 15 per cent increase in revenue from Sh30.9 billion in the last financial year to Sh35.4 billion in the year to June 2024, driven by higher sales volumes and favourable forex rates.

Following the profit, KPC remitted Sh7 billion in dividends to the National Treasury.

The government last year ordered State corporations to remit 80 per cent of their net profits to the Treasury.

"Our strategic outlook has evolved with the revision of our corporate strategic plan to Vision 2025. This forward-thinking approach ensures that KPC remains aligned with the dynamic market environment and continues to fulfil its strategic imperatives," said KPC Chairperson Faith Bett-Boinett, adding the performance was on account of enhanced operational efficiency.

In the financial year 2023/24, total throughput volumes grew by six per cent to 9.1 million cubic metres (M3), up from 8.6 million cubic metres the previous year.

Domestic throughput volumes slightly increased by 0.1 per cent to 4.5 million cubic metres, while export volumes surged by 12 per cent to 4.7 million cubic metres.

Managing Director Joe Sang said KPC was dedicated to driving sustainable growth and innovation. He noted that the State entity had completed the acquisition of the Kenya Petroleum Refineries Limited (KPRL), which has been operated by KPC under a lease agreement since the year 2017.

The company has now embarked on the repair of KPRL's storage assets, which is expected to increase its capacity and further entrench "Kenya's position as a regional oil and gas hub". It also plans to set up a 30,000-tonne cooking gas storage facility at KPRL that is expected to significantly improve local handling and storage of the fuel.

Sang explained that KPC would continue to increase operational efficiency by investing in capital projects that include leak and intrusion detection and the Supervisory Control and Data Acquisition (SCADA) system, Line IV (Nairobi- Eldoret) capacity enhancement and Nairobi Terminal (PS10) bottom loading facility.

In addition to growing its main revenue stream of transportation and storage of petroleum products, KPC is also exploring alternative revenue streams such as Fiber Optic Cable (FOC) and Morendat Institute of Oil and Gas.