BOC Posts 82% Jump in Net Profit as Demand for Medical Gas Rises
BOC Kenya, which produces and distributes industrial and medical gases throughout the East African region, has posted impressive results for the year that ended in December 2020. The firm’s net profit rose by 82% to Kes 101.7 million at the end of 2020 from Kes 55.9 million at the end of 2019 as the demand for medical oxygen shot through the roof.
BOC recorded a 12.5% rise in revenue to Kes 1.1 billion in 2020 compared to the Kes 976 million revenue posted in 2019. According to the gas manufacturer, income from the sale of medical gas has been on a steady rise in recent years as investments in the healthcare sector have intensified.
The year 2020 was a mixed bag for BOC Kenya. Although the company benefited from the increased need for medical oxygen, demand for industrial gases fell sharply due to the economic downturn caused by the pandemic. BOC also suffered high importation charges as it imported some of the medical oxygen to meet the high demand for the product.
The value of the company’s assets increased to Kes 2.1 billion at the end of December 2020, a 5% increase from the previous year. Total liabilities decreased by 13% to Kes 482 million from Kes 553 million a year earlier.
BOC said that they are committed to provide impressive financial performance to the investors in future. They plan to have adequate supply of oxygen to meet the growing demand as well as increase their supply of industrial gases, special gases, welding products and accessories and other equipment in order to build on the gains made in 2020.
The directors of the company recommend a final dividend of Kes 4.15 to be paid on or about 19th July 2021.