The Star (Nairobi)

18 August 2014

Kenya: BOC Kenya Slashes Dividend On Lower Profit

BOC Kenya Ltd, which manufactures industrial and medical gases, has slashed its interim dividend for the first half of the year following decline in after-tax profit.

The NSE-listed company's board has declared an interim dividend of Sh2.20 per share, 18.2 per cent lower than the Sh2.60 a share paid in a similar period last year.

Its net profit slowed down to Sh85.62 million in the six months compared to Sh101.26 million a year ago, a 15.4 per cent decline. Profitability was down despite its revenue growing by 7.3 per cent to Sh674.98 million from Sh629.18 million.

The firm attributed the decline in profits "to increased electricity costs and a revision in the calculation methodology for stock obsolescence allowances."

BOC Gases paid a total dividend of Sh5.20 per share in 2013 - in two tranches of Sh2.60 a share - higher than the Sh5.05 per share in 2012.

Besides industrial and medical gases, BOC supplies welding products and medical equipment. It has subsidiaries in Uganda and Tanzania.

The firm's stock was unmoved on Friday at Sh146 a piece.

Ads by Google

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.