Rental income, cut on forex loss fuel Total’s net profit rise to Sh2.2bn

Total Kenya has booked a 37.6 per cent growth in net profit for the year ended December 31, fuelled by higher rental income from its property and a lower foreign exchange loss burden.

The NSE-listed oil marketer reported a net profit of Sh2.23 billion compared to Sh1.62 billion a year earlier.

The growth will see shareholders enjoy a 37.6 per cent raise in dividends after the directors recommended a final payout of Sh1.06 per share from Sh0.77 in 2015.

“The improved financial performance has mainly been driven by action plans set by management to grow the business in all segments, effective management of working capital requirements, costs, cash, and investments in safety and profitable business ventures,” the company managing director Anne-Solange Renouard said in a statement.

Leads marketshare

Total, which is the leader in Kenya’s petroleum market with a 16 per cent share in sales, cut its forex loss by Sh298.8 million or 93 per cent in the review period to Sh21.5 million.

It cited the cutback on a relatively stable shilling against the US dollar.

The marketer’s other income – rental income and non-forecourt revenues – rose by Sh197 million to Sh962.9 million.

Net sales, however, tanked 26 per cent to Sh89 billion on lower international prices of oil even though gross margins increased 12 per cent to Sh7.8 billion.

The Sh1.06 a piece dividend payout is subject to shareholders approval in the company’s upcoming annual general meeting on June 16.

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