[2008-06-16]  Total Kenya's First Quarter Profit Rises to KSH141m
Total Kenya has posted a net profit rise of 22 percent to KSH141 from KSH116 million between January and March compared to a similar period last year.
This is despite the economy having grappled with post-election violence caused by a disputed presidential election results.
Total's managing director, Mr. Bertrand Fontages, said the beginning of the first quarter of 2008 was characterised by political uncertainty, insecurity and intermittent skirmishes affecting transport and tourism.
"Logistical constraints in our industry centred around insufficient pipeline capacity and restrictions on storage availability for imports, were present," he said of the results that were sent to Nairobi Stock Exchange.
Mr. Fontages said the international cost of petroleum products continued to rise relentlessly depressing margins in a competitive market due to the difficulty in fully passing on the price increases to the consumers.
In spite of the difficult environment, Total recorded improved results with turnover increasing by 12 percent to KSH11.2 billion from the previous year's KSH10 billion. This was attributed to a rise in oil prices.
However, this was offset by a proportionate increase in the cost of sales.
Operating profit rose by 46 per cent to KSH323 million compared to KSH221 million recorded between January and March 2007.
Long-outstanding tax refunds from Kenya Revenue Authority contributed to the growth of operating profit.
Profit before tax stood at KSH215 million in the same period compared to KSH172 of January to March last year. The oil marketer said that results of the rest of the fiscal year will depend on improvement of performance across major sectors including tourism.
"Our investments in all the business segments are well positioned to take advantage of any such improved economic performance to deliver good results," said Mr. Fontages.

Source: Copyright © 2008 The Nation.