TotalEnergies Kenya has reported a 50% increase in the half-year profit to Kes 1.7 billion for the period ended 30th June 2021 from Kes1.1 billion reported at the end of the first half of 2020.
TotalEnergies attributed the good performance to the economic recovery witnessed in Kenya in the first half of this year, with the country gradually opening up. The company also reported an increase in sales revenue, diversified its revenue streams, and controlled its fixed costs.
Total’s assets in the oil marketer and distributor increased to Kes 43.4 billion as of 30th June 2021 from Kes 43.0 billion as of 31st December 2020. Total liabilities in the group remained unchanged at Kes15.8 billion
Net sales jumped by 10% to Kes 34.5 billion at the end of June 2021, from Kes 31.5 billion in June 2020. Its operating expenses remained relatively unchanged at Kes 3.13 billion compared to Kes 3.14 billion reported in the same period a year ago.
Operating expenses remained at the same level compared to last year resulting from cost discipline adopted by management to be more efficient and agile. Foreign exchange loss decreased substantially to Kes 3 million (Kes 81 million in 2020) due to the management of transactions in foreign currency and stability of the Kenya Shilling against the US Dollar in the period.
TotalEnergies Outlook and Dividend
The Board expressed confidence in the remaining part of the year, saying the economic environment remains challenging in the short term owing to the resurgent of new waves and variants of COVID -19. However, they said they have taken measures to mitigate the impacts of COVID-19, in line with the long-term strategies geared towards capturing growth opportunities.
In June this year, Total Kenya announced its rebrand to TotalEnergies Marketing Kenya Plc as part of its shift to cleaner energy. “The Company is geared towards ensuring clean and accessible energy. This is being achieved through the distribution and sale of affordable solar lanterns in all its service stations countrywide,” Total said in its annual report.
The Board do not recommend payment of interim dividend.