Total Kenya Reports impressive first half perfomance

Total 1H2010 Results
Total Kenya has announced its results for the half year ended 30th June 2010. For the period, the company earned Ksh.1.72 per share (up 719%y/y) compared to Ksh.0.21 per share it earned in the same period last year. Profit before tax surged 772%y/y to Ksh.481mln (US$5.93mln) from Ksh.55mln (US$0.67mln) last year while Net profit also surged 717%y/y to Ksh.302mln (US$3.72mln).
Turnover more than doubled, recording a 154%y/y growth to Ksh.38.9bn (US$480mln) up from Ksh.15.3bn (US$180mln) in 2009.

Total’s strong first half performance is directly attributed to benefits of synergies it envisaged to result from its acquisition of Chevron assets. Since the acquisition of Chevron’s 89 service stations in November 2008 and the subsequent rebranding beginning July last year, Total’s OpEx grew significantly to 83%y/y (77% in Q1), attributable to increased operations and the rebranding exercise. Also inline with the acquisition, depreciation and amortization rose 177% mainly due to the effect of the acquired assets.
Total Kenya acquired Total Marketing Kenya Limited, the company that had been created to buy out the Chevron operations in Kenya, through both medium term and short-term debt with a mix of short and medium term debt totaling to over Ksh.11bn, inclusive of the financing costs associated with the interest payable on these funds, representing a continued huge expense on the company’s bill.
Management remains optimistic on second half performance in line with projections on improved product outflow to its upcountry locations and stability in international crude prices.
We also raise our full year outlook for the company and remain optimistic of a strong second half perfomance.