Dont be, this is kq you know. Its ironic, nowadays i feel happy when i goes down. Coz it always disappoints in the other direction. But you can always count on it going down. Im a buyer at 42.

In forex u can profit in both directions; up n down. But here guys, we stuck with no alternative but to wait for dir change. Alternatively if u can continue stocking at much lower prices.

Naikuni was on Money Matters. [Where is @Horton?]

- 3.1mn passengers in 2010-11 & only 60,000 domestic!
- Another plane coming for domestic operations [meaning NBO-MBA-KSM] in 2011 so expect higher/better domestic pax
- Hedging will remain a cornerstone of KQ's strategy
- KQ cannot afford to pay cabin crew any more moolah [already very well paid]

hisah, what do you think will be the effect of high oil prices on oil companies both in Kenya and abroad

i agree w/ you @ selah . i think he was abit toooo proud on that interview.
and by the way i amnt tooo worried on the so called KQ dismantling coz where are the voulmes. when it fals by 2.00 or 3.00 w/ 500k volume where's the worry it might be a single investor bailing out w/ his/her profits...
Open your eyes guyz this is nothing BUT a bliss !!!

I watch money matters due to lack of proper business programs in Kenya. I dont mind the fact that naikuni came out cocky but what i hated was madowo interviewing skills. He asks a question then asks another before the previous one is answered and he never goes back to the unanswered questions.
Infact all of madowo interviews are lackluster. He needs focus, need to get to the core of an issue and ask tough questions. Last weeks interview with rene he escorted meza without asking him any tough questions!

Back to KQ. Naikuni did excellent in that interview. I am even going to look into KQ which i had totally ignored because my main source of info on anything KQ was VVS. That will soon change.

OK You didn't ask me by here is my two cents.

Rising prices are normally a boon to the industry since the current stock will always be cheaper than the prevailing international prices. Consequently, oil companies increase the prices immediately to reflect the increasing replacement cost and make higher profits. This will cushion the company when the prices are falling as one has to liquidate the old stocks immediately or burn.

While ERC reviews local prices on 15th of the following month using international monthly average price, most oil companies by on a formula around the BL date (usually 2-BL-2. This will create a very big challenge for marketers trying to match the buying price (based on a particular date) with the statutory price )based on a whole month average).

Either ERC reviews their pricing mechanism or else things will be very thick

Meanwhile after ERC realising that oil marketers were making supernormal profits in Kerosene rumors are rife that ERC want to tweak the pricing and wipe out that margin. Let us wait till 15th for further clarity.

What is BL as in 'BL date'?

Also ERC would be idiotic to assume/use whole month average in such a volatile atmosphere since many OMCs would not be interested in importing fuel to sell at a loss! ERC needs to update prices every 2 weeks [per OTS shipment] or tweak the formula to allow more leeway to OMCs...

@milken -
How can OMCs benefit from the situation?
What if OTS price is higher than what is calculated/assumed/used under the formula?
Can firms like KK decide NOT to sell fuel imported via OTS into the market [if they store it in their facilities]?
Are firm obligated to release PRIVATE IMPORTS [held outside of KPC] into the Kenya market?

Call me @VVS