Nairobi — Gas maker, BOC Kenya, has reported a 32 per cent dip in profit after tax for the first half of 2010, amid sluggish sales and high cost of production.

In the six months ending June 30, the firms profit after tax declined from Sh102.9 million recorded over the same period last year to Sh70.1 million.

In the period under review, turnover declined by 9 per cent in what the firm attributes to a challenging business environment, from Sh641 million posted during the first six months of last year to Sh584.8 million.

Profit before tax was also down by 32 per cent from Sh146.9 million in 2009 to Sh100.5 million for the first half of 2010.

The firm's acting MD, Mr Kennedy Jaccojwang, attributes the decline to increased cost of operation, one-off separation costs and reduced income from investments.

Analysts say BOC's performance is an indication that its core business of selling medical and industrial gases other than carbon dioxide is approaching maturity.

In March this year, the firm's managing director, John Kariuki, resigned amid sluggish performance and difficulty in entering new markets.

BOC has been eyeing the carbon dioxide market through the purchase of Carbacid Investment, but the deal engineered in 2005 failed to off after the capital markets regulator refused to grant approval.