TotalEnergies Marketing Kenya Plc remained resilient with positive PAT of KShs 2,739mn in FY21

By Published On: April 13th, 2022Categories: Corporate announcement, Earnings

TotalEnergies Marketing Nigeria Plc (TOTAL.ng) 2021 Annual Report

COMMENTARY

The Kenyan economy experienced recovery in 2021 compared to previous year, which was adversely impacted by the global COVID-19 pandemic. The business environment was positively impacted by easing of the pandemic-related restrictions that had been instituted by the Kenya Government to mitigate the spread of the disease. During the year, international oil prices rallied upwards supported by increased energy demand linked to global economic rebound after the 2020 recession. The rise in global oil prices increased fuel prices in the country as well as our working capital requirements.

The Company’s performance remained resilient with positive profit after tax of KShs 2,739 million (2020: KShs 3,297 million) in the the challenging environment of sharp increase in fuel prices.The Company’s gross margins decreased to KShs 8,801 million (2020: KShs 9,057 million) majorly impacted by lag in price adjustment arising from sharp increase in fuel prices.

Other income decreased to KShs 1,806 million (2020: KShs 1,903 million) in the absence of a non-recurring sundry income from VAT tax relief realized in 2020. However, revenues from diversified investments in Shops, Food and Services (SFS) and income from partnerships with third parties increased in the year compared to 2020.

The increase in operating expenses is majorly attributable to rebranding costs linked to the new brand name TotalEnergies and increased business activities compared to 2020.The increase in working capital requirements emanating from increased oil prices led to a net finance loss of KShs 66 million (2020: Net finance income of KShs 86 million).

The foreign exchange loss decreased substantially to KShs 56 million (2020: KShs 144 million) thanks to the proactive management of transactions in foreign currency and stability of the Kenyan shilling against the US dollar in the year.

The Company’s statement of financial position remained strong with total assets of KShs 47.03 billion (2020: KShs 42.99 billion). The Company invested KShs 2,188 million (2020: KShs 1,720 million) in line with the business strategy to enhance safety standards in our operations and continue to build a profitable and sustainable multi-energy company.

FUTURE OUTLOOK

The business environment remains challenging due to uncertainty of global fuel prices and inherent risks in commodity demand and supply. The Company’s priority is to focus on delivery; delivering our quality service to our customers, delivering on our marketing margins, and delivering our expansion in profitable and sustainable channels. All these are key for the increase in value and shareholder return while maintaining a strong balance sheet. The Company will continue to focus on safety, operational excellence, profitable growth, and positive cashflow generation.

PROPOSED DIVIDENDS

The Directors recommend payment of a first and final dividend of KShs 1.31 per share for the year ended 31 December 2027 (2020: KShs 1.57) payable on or around 30 July 2022, subject to shareholders’ approval at the 68″ Annual General Meeting.

ANNUAL GENERAL MEETING

The 68th Annual General Meeting of TotalEnergies Marketing Kenya Plc will be held via electronic means on 24 June 2022.

CLOSURE OF THE SHARE REGISTER

Subject to shareholders’ approval at the Annual General Meeting, the share register will be closed for one day at the close of business on 24 June 2022 for the purpose of dividend calculation.

By order of the Board

Eric FANCHINI
Managing Director
March 31, 2022


TotalEnergies Marketing Kenya Plc (TOTL.ke)

Share price: 23.40 Shillings (0.85 | 3.77% – 28/06/22)

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