The KenolKobil Group is Africa’s fastest growing aboriginal oil marketing firm with a liberal asset set across Central, Southern and Eastern parts of Africa. It consists of subsidiaries in nine African countries outside Kenya (Head Office) including; Uganda, Tanzania, Rwanda, Zambia, Ethiopia, Burundi, Zimbabwe, Mozambique and Congo DR.
The oil marketing company trades both in crude and refined petroleum products which include industrial oils, aviation fuels, LPG, motor fuels, lubricants.They are the top importers and have an expanding range of products.
KenolKobil Limited has grown enormously to become one of Africa’s leading corporate brands and is often cited as African business success story.
KSh3.89 Billion was posted as a loss by the KenolKobil, after it suspended all capital expenditures. This comes when the company is counting on a solid performance to boost its negotiations with Swiss firm Puma Energy to buy the majority stake in the firm. The firm joined its rival, Total Kenya in loss making and said that the suspension will last until its capital flow improves.
Despite the tough economic cycle the group is optimistic with the potential deal that is ongoing between Puma Energy and key shareholders. KenolKobil expects the deal to boost in forex exchange risk, finance cost, inventory management and source of products for the group.
Puma Energy has maintained the negotiations but have no timelines on finalising of the deal, due to price negotiations and diligence process are still going on.
The oil marketing loss has ended the speculations on why its performance was in contrast with that of Total Kenya reported KSh260 million net loss for the first half of the year.
Total management blamed the oil price capping formula (it set maximum fuel price) for the loss unlike KenolKobil.
On a report done KenolKobil cost of sales grew by 32 percent to KSh101 billion from KSh77 billion in 2011, while its finance costs doubled to KSh1.1 billion.
Its not clear why the company delayed announcing it’s results this year. In 2010 it announced its half year results on July 28 and in 2011 on July 26 while in 2012 it was on September 7.