[2008-07-21]  Total's Profit Rises to Sh596 Million
Total Kenya's net profit rose by 113 per cent to Sh596.4 million in the first half of this year. This is despite Kenya grappling with effects of post- election violence sparked by a disputed presidential election results.
The oil marketer's unaudited results for six months up to June 30, show the firm's profit rising to Sh596.4 million from Sh279.4 million realised in a similar period last year.
Total Kenya's managing director, Mr Bertrand Fontages, said despite business operations disruption at the beginning of 2008 due to political uncertainty, the firm recorded excellent results compared to last year.
"Logistical constraints in our industry centred around insufficient pipeline capacity and restrictions on storage availability for imports, are present," he said of the results sent to the Nairobi Stock Exchange.
Mr Fontages said international cost of petroleum products continues to rise relentlessly depressing margins in a competitive market due to the difficulty to fully pass on the price increases to consumers.
Cost of sales
In spite of the difficult environment, Total recorded improved results with turnover increasing by 30 per cent to Sh26.2 billion from the previous year's Sh20.5 billion as a result of higher oil prices. This was, however, offset by a proportionate increase in the cost of sales.
Operating profit rose by 116 per cent to Sh1 billion compared to Sh479.9 million recorded between January and June 2007. A big proportion came from long-outstanding tax refunds from the Kenya Revenue Authority which contributed to growth of operating profit.
Mr Fontages said growth in volumes in general trade and network channels of Total Kenya contributed to operating profit rising by 116 per cent to Sh1 billion.
He said an aggressive management of the working capital requirement which reduced by Sh375 million over the last six months resulted in a stable treasury position.
Guarded optimism
Profit before tax stood at Sh902.7 million compared to Sh421.8 million for the period between January and June this year though results of the rest of the year will depend on performance of all sectors of the economy.

Source: ALLAFRICA