Despite the improvement in revenue from Shops, Food & Services (SFS), other incomes plunged 40% to KES 753 million from KES 1.23 billion in the first half of 2024. Operating expenses edged up 5.9% to KES 4.1 billion, primarily due to the effect of inflation on local costs.
Net finance costs decreased to KES 688 million from KES 1.5 billion due to lower borrowing costs. Net forex gains fell off a cliff to KES 119 million from KES 624 million on account of the Kenya Shilling’s stability against the US dollar. The Kenya Shilling has remained stable at KES 129 per US dollar since July 2024.
Pre-tax profit reached KES 1.4 billion, up 12.6%, while net profit climbed 17.3% or KES 162.2 million to KES 1.1 billion. Earnings per Share (EPS) stood at KES 1.75, 17.4% higher than H1’s 2024 KES 1.49. TotalEnergies’ Board of Directors did not recommend payment of an interim dividend.
The energy firm saw its asset base contract to KES 60.8 billion from KES 66.4 billion, while total equity inched up 1.7% to KES 32.6 billion from KES 32 billion. The company invested KES 992 million in network optimization and logistical optimization.
TotalEnergies External Business Environment
In the period under review, the company experienced both favourable and unfavourable macroeconomic conditions. Inflation eased. Monetary Policy Committee cut the Central Bank Rate to 9.75%. Global oil and gas prices decreased compared to the previous period. The Kenya shilling remained stable against the US dollar. However, the firm’s operations were highly affected by the antigovernment protests and increased competition from its peers. The company remains focused in adapting to a changing business environment.
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