Total Kenya records Sh 2.23 billion net profit

NAIROBI, KENYA: Total Kenya’s after tax profit for Financial Year ended December 31, 2016 increased by 36 percent from Sh1.62billion in 2015 to Sh 2.23 billion.

In a statement, the company said profit change was driven by prudent cost management and sustained operational efficiency.

“The improved financial performance has mainly been driven by action plans set by management to grow the business in all segments, effective management of working capital requirements, costs, cash, and investments in safety and profitable business ventures,” said Total Kenya Managing Director Anne-Solange Renouard.

The drop in international oil prices however led to a decrease of 26 percent in net sales. The effective cost of sales management and stronger focus on more profitable business segments in 2016 led to increase in  Gross margins by 12 percent from Shs 6.99 billion in 2015 to Shs 7.85 billion last year.

The Directors have recommended the payment of a first and final dividend of Shs 1.06 per share for the year compared to Shs 0.77 per share paid in 2015.

This proposed payout represents an increase of 38 percent as compared to 2015 and is subject to the shareholders approval at the 63rd Annual General Meeting to be held on June 16, this year.

With Kenya’s economic growth expected at around 6 percent in 2017, the Board is confident that the Company is well placed to take advantage of business opportunities owing to sustained investments, skilled workforce and its wide network footprint.