Nairobi — Total Kenya has announced a profit after tax of Sh461 million in the first half of 2013 compared to a loss of Sh260 million over the same period last year.
Sales volumes grew at 58 percent from 393 kilometric tonnes (KMT) in 2012 to 621 KMT in 2013 buoyed by Open Tender System (OTS) sales of 198 KMT and increased sales in network, lubricants and export channels.
Turnover increased by 42 percent mainly as a result of the increase in sales volume while cost of sales increased by 44 percent resulting in a lower unit gross margin of 4.8 percent of network turnover in 2013 compared to 6.5 percent in half year of 2012.
Finance cost decreased by 87 percent to Sh991 million due to reduction in borrowing from banks, following an additional financing of shared capital of Sh5.2 billion coupled with reduction in working capital requirements and lower average interest rates on short term loans and overdrafts.
This raised the preference shares amount to Sh9.1 billion represented by 454.5 million shares, which only earn dividend rather than interest.
As no interim dividend was declared, net profits are equivalent to attributable profits.
The management remains optimistic that continued engagement with stakeholders will pave the way for a better operating environment and improved supply.
Total will also continue to participate actively in the OTS business for the remainder of the year.