http://www.businessdaily...10/-/hdrqq/-/index.html
headline in bdafrica should read "expresses interest" as a deal hasnt been concluded yet..
I think this is a great company to invest in because:
1. Of the above, growing market share constantly
2. Relatively cheap EPS was about 8.37bob last year(15 months)
3. Expected results should be good after the notice they came out with basically over-riding the previously issued profit warning for 1H
4. They should be recipients of Kshs 4.6B from KPC in damages, which amounts to 4 year PAT for the company, i understand from someone close to the matter that the KPC appeal doesnt hold any water. Even, if they pay Kshs1B per year, that basically doubles PAT without a blink of an eye.
5. Efficiency at KPC after the lawsuit and arbitration should amount to more efficient services from KPC and hence better margins.
However,
1.They have crappy Net margins, which is industry wide, but that should improve with better KPC services, better refinery processes as we only get 54% white fuel from crude as opposed to 86% in western nations due to refinery processes.
2.Finance costs, they should have these contained with the excess cash they receive from operating activities & KPC cash.