look i won't discuss how they lost money in the hedging but I know how. It was nothing deliberate but a situation they thought made sense at the time they got into to address even bigger losses from contracts in place. If you undestand how industrial oil and avgas contracts are priced you will see it.

What I am saying is after making the losses what were the key lessons. KK appears to have learnt this lessons and thus avoidance of these contracts as they are low margin can easily burn you.

If Chief @hisah could supply us with a Brent chart? Thank you.

It was not the crude hedges that hurt as much as forex hedges. The 82 - 107 -84 within 3 months caused a lot of pain. Then the high interest rates.

According to KK, there are 60 OMCs in Kenya with most being briefcase dealers. Some of these are going to go bust as KK (via David Ohana) has taken control of the Allocation Committee for ullage. It was the misuse of ullage by 'connected briefcases' that hurt many OMCs like KK & Total when it came to discharging cargoes.

At the AGM, KK (aka Segman ) admitted they had open (speculative) forex hedges and were long stocks (they thought fuel prices in KES would rise). Wham. Double wham. Shs 9bn (or more) wham. They also lost money on hedges for fuel supplies to KenGen & contracts for aviation.

@cde What's MoM dealing?

Hedges are out for now BUT they will enter into them in the future to cover products NOT to speculate.

They will reduce (not quit) the aviation business which has low margins.

Reduction of stocks [loss taken in 2012] to reduce debt.

Reduction of debt [sale of stocks & assets] to reduce debt.

The search for a 'Strategic Partner' continues. Even Puma may be back.

They have looked inside their souls and decided to change how they do business. Cut the fat they knew was accumulating but hadn't looked at. Cut back on unprofitable 'lines of business' as well as sell off excess properties. Expand high(er) margin businesses.

Expansion of storage facilities continues unabated in most countries including Uganda, DRC, Burundi, etc. The

The serious shareholders asked serious questions AFTER the official AGM was closed & those coming for lunch ran away! The Transaction Advisor (Kestrel) explained it was not KK that was up for sale but the shares of the key shareholders. Why did the talks collapse? It was about 'value' i.e. the 'key shareholders' did not find the price offered attractive. The price was not provided by Kestrel citing confidentiality.

why mark to market a hedge? makes no sense