Kenyan fuel retailer announces healthy results

26/07/2011 - Kenya property & investment news Posted by Neil King
Kenyan fuel retailer announces healthy results

KenolKobil Ltd, the Kenyan fuel retailer with operations in nine African countries, has confirmed that profit surged 83 per cent over the first six months of 2011, sfgate.com has reported.The firm announced that net income increased to 2.16 billion shillings in the six months through June, up from 1.18 billion shillings a year earlier.Sales rose 38 per cent to 83.3 billion shillings, an emailed statement confirmed."Going forward tosh, management forecast that the second half of 2011 will be stronger than the same period" a year earlier, the statement read.Chairman Jacob Segman revealed that Kenol relied less on the Kenyan distribution system, "which is still unreliable and whose inefficiencies continue to challenge the business"."There is growth in margins and significant volume upside," explained Gregory Waweru, an analyst at Nairobi-based Kestrel Capital East Africa Ltd.The announcement has prompted the company's directors to recommend a dividend of 0.57 shillings.