THE Tanzania Oxygen Gases Ltd (TOL) has this year realised 7.4/- billion in revenue, which is 26 per cent growth from last year's six billion/-, in the wake of comprehensive and strategic initiatives geared to improve the company's performance.
This was revealed yesterday by the TOL Board Chairman, Harold Temu, during the company's Annual General Meeting (AGM) held in Dar es Salaam recently. "Besides these achievements, there was similarly a positive upturn in the company's profitability, recording an after tax profit of 120bn/- compared to an after tax loss of two billion in the year 2010," Temu told company stakeholders at the meeting.
Expounding, he said, in line with the strategic turn-around plan, "the company has recorded a break-even profit for the first time in the last five years." Similarly, share price has appreciated from 190/- per share when the new board took over to the present share price of 240/- per share.
"It is encouraging to note that even though the company is not yet in a position to pay dividends, shareholders' wealth have growth by about 2bn/- within that short time," he said.
According to the board chairman, the profit-making trend is set to continue in the coming years, noting that, "already the six months to June 2012, the company recorded 500 million/- profit." Elaborating, Temu said TOL has so far invested 6.2 billion/- in various projects in line with the company's strategic turnaround plan.
The projects included the expansion of CO2 production capacity from 5,040 tonnes to over 19,000 tonnes a year, adding that the respective project was in the highlight of the turnaround strategy and is expected to strengthen the company's performance significantly.
"The company now needs to quickly focus on realizing its planned entry into LPG market come 2013 as per the turnaround strategy," said Temu. Speaking at the meeting, TOL Executive Director, Daniel Warungu said that during the last two years, the company has invested heavily in hardware and other infrastructure to ensure it has the technological capabilities and capacities to support its ambitious growth strategy.
According to Warungu, there still remains some more infrastructural investments to be made over the next few years starting 2013; attention will be directed towards finessing, "our human resources management, marketing, and customer service - these three areas are and have been some of the main missing ingredients towards unlocking and delivering value to our customers.
'Our customers should begin to notice a difference in our service delivery from next year now that we have the required assets to support our production and distribution activities," he added. Meanwhile, TOL plans toward LPG implementation will be progressing alongside the current operations in line with the strategic turn-around strategy, according to the company's executive director.
A senior TOL shareholder, Arnold Kileo said, "I am glad the company is now heading towards the right direction, because of strategic plans being implemented by the management. We will soon start paying dividends to shareholders."