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KenolKobil FY 2016 net profit up 19%
Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:heri wrote:VituVingiSana wrote:heri wrote:Has the profit growth slowed down. i was expecting higher profits and higher EPS of closer to 2 bob The 600mn KPRL write-off. Otherwise it would have been 2/- (3bn) Thanks. What is the total amount that needs to be written off? It's interesting. They do not need to write it off BUT they will write it off to "clean up" the books. Could this be done to attract another buyer (eg Puma)? Amount outstanding as @mlennyma said is 600mn more. 2H 2017 will have challenges but Jan and Feb were very good for volumes. Strong volumes, stable oil prices and stable KES all portend a better 2017. These are tricks used by managers to secure their jobs. Segman could have turned around KK and returned it to +3B PBT in 3 yrs but posting 15% for 10 yrs wins accolades from shareholders while posting 1000% in 2 yrs then flatlining can lead to being fired. Wenger knows it very well and tries his best not to win the premier league just so that he can retain his job. The 600mn provisioned in 2016 & 500-600mn to be provisioned in 2017 aren't cash losses. As you said, when the courts ultimately rule in favor of OMCs, they could be written back to boost profits in a slow year. That said, folks aren't dumb enough not to see through it. I do see fireworks here, guys will be burnt to recognition. Watching this space. ,Behold, a sower went forth to sow;....
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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muandiwambeu wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:heri wrote:VituVingiSana wrote:heri wrote:Has the profit growth slowed down. i was expecting higher profits and higher EPS of closer to 2 bob The 600mn KPRL write-off. Otherwise it would have been 2/- (3bn) Thanks. What is the total amount that needs to be written off? It's interesting. They do not need to write it off BUT they will write it off to "clean up" the books. Could this be done to attract another buyer (eg Puma)? Amount outstanding as @mlennyma said is 600mn more. 2H 2017 will have challenges but Jan and Feb were very good for volumes. Strong volumes, stable oil prices and stable KES all portend a better 2017. These are tricks used by managers to secure their jobs. Segman could have turned around KK and returned it to +3B PBT in 3 yrs but posting 15% for 10 yrs wins accolades from shareholders while posting 1000% in 2 yrs then flatlining can lead to being fired. Wenger knows it very well and tries his best not to win the premier league just so that he can retain his job. The 600mn provisioned in 2016 & 500-600mn to be provisioned in 2017 aren't cash losses. As you said, when the courts ultimately rule in favor of OMCs, they could be written back to boost profits in a slow year. That said, folks aren't dumb enough not to see through it. I do see fireworks here, guys will be burnt to recognition. Watching this space.  John 5:17 But Jesus replied, βMy Father is always working, and so am I.β
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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muandiwambeu wrote:VituVingiSana wrote:sparkly wrote:VituVingiSana wrote:heri wrote:VituVingiSana wrote:heri wrote:Has the profit growth slowed down. i was expecting higher profits and higher EPS of closer to 2 bob The 600mn KPRL write-off. Otherwise it would have been 2/- (3bn) Thanks. What is the total amount that needs to be written off? It's interesting. They do not need to write it off BUT they will write it off to "clean up" the books. Could this be done to attract another buyer (eg Puma)? Amount outstanding as @mlennyma said is 600mn more. 2H 2017 will have challenges but Jan and Feb were very good for volumes. Strong volumes, stable oil prices and stable KES all portend a better 2017. These are tricks used by managers to secure their jobs. Segman could have turned around KK and returned it to +3B PBT in 3 yrs but posting 15% for 10 yrs wins accolades from shareholders while posting 1000% in 2 yrs then flatlining can lead to being fired. Wenger knows it very well and tries his best not to win the premier league just so that he can retain his job. The 600mn provisioned in 2016 & 500-600mn to be provisioned in 2017 aren't cash losses. As you said, when the courts ultimately rule in favor of OMCs, they could be written back to boost profits in a slow year. That said, folks aren't dumb enough not to see through it. I do see fireworks here, guys will be burnt to recognition. Watching this space. With dividends! The write-back of KPRL amounts will be paid out as dividends. As Warren Buffett says: We don't mind lumpy earnings as long as the overall returns meet our expectations. Ohana expects a better 1H 2017 vs 1H 2016. Elections make 2H 2017 difficult to figure out. Sad reality. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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VituVingiSana wrote:mlennyma wrote:Kenolkobil reports FY group pre-tax profit 3.54 bln shillings.
March 7 (Reuters) - Kenolkobil Ltd
FY ended Dec 2016 profit before tax 3.54 billion shillings versus 2.78 billion shillings year ago
FY ended Dec 2016 group net sales of 103.50 billion shillings versus 86.55 billion shillings year ago
* Board recommends final dividend of 0.30cts Quality. Even with lower oil prices turnover is up 20% and volumes +30% even after selling Tanzania operations. Solid dividend. The outlook for 2017 looks even better according to Ohana. 30 new sites in 2016 which will add to volumes and profits in 2017. Profits and cashflow unlike some firms we know. ππΌππΌππΌ KPRL write-off of 600mn and perhaps more in 2017 but if and when it is paid it can be written back into profits. Total has sued KPRL and it can take 5 years but we can wait. Impressive. KK is increasing revenue hence market share, this time with the profits to go with it. The investor's chief problem - and even his worst enemy - is likely to be himself
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Rank: Member Joined: 2/8/2007 Posts: 808
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Certainly one of two excellent businesses on the NSE whose management is able to read, internalize the challenging environment and respond with brilliant execution.
The humility in Ohana is very admirable. I know of a few other CEOs who would be gloating and giving countless interviews or collecting PHDs on the back of such a recovery. I believe the media need to shine the spotlight on David for the remarkable turnaround especially coming in the wake of all that illumination that was wasted on Jonathan Ciano.
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Rank: Chief Joined: 1/3/2007 Posts: 18,053 Location: Nairobi
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Ohana was clear that KK wants PROFITABLE market share. Not market share for the sake of market share. KK has reduced the number of dealer-owned stations in Ethiopia coz they were not as profitable as they could have been. Ethiopia is now profitable. All subsidiaries are profitable. Zambia and Burundi are debt free. He has conceded KK will not be debt free in 2017 on the back on increased oil prices and larger market share which requires more Working Capital BUT the debt:equity and debt:turnover has dropped significantly. With oil prices between $50-60, debt will remain at current levels. LPG sales are growing monthly as KK puts more cylinders into all its markets even Ethiopia. As much as I want a buy-out, if there's none then KK will still grow its profits. Let's be clear, there will be good and bad days. Overall, KK can expect good growth in 2017 as long as we don't burn up the country in Aug/Sep! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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Kausha wrote:Certainly one of two excellent businesses on the NSE whose management is able to read, internalize the challenging environment and respond with brilliant execution.
The humility in Ohana is very admirable. I know of a few other CEOs who would be gloating and giving countless interviews or collecting PHDs on the back of such a recovery. I believe the media need to shine the spotlight on David for the remarkable turnaround especially coming in the wake of all that illumination that was wasted on Jonathan Ciano. Which is the other? Life is short. Live passionately.
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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KK borrowing increased from ksh.4.662bn to 7.330bn Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 8/30/2007 Posts: 1,558 Location: Nairobi
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Ericsson wrote:KK borrowing increased from ksh.4.662bn to 7.330bn And seems like they hold it all in cash and cash equivalents
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Rank: Elder Joined: 7/21/2010 Posts: 6,175 Location: nairobi
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Down trend but volumes insignificant "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Kenol Kobil vs KENGEN vvs vs sparkly Who's winning so far Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Ericsson wrote:Kenol Kobil vs KENGEN
vvs vs sparkly
Who's winning so far From the cartoon so far KK is toppish while Kengen has upside legs!$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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hisah wrote:Ericsson wrote:Kenol Kobil vs KENGEN
vvs vs sparkly
Who's winning so far From the cartoon so far KK is toppish while Kengen has upside legs! Starting point was KK at 13 and KENGEN at 6 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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I will buy KK at 9 bob before elections...did Ntimama have lotsa KK shares? possunt quia posse videntur
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Rank: Elder Joined: 2/26/2012 Posts: 15,979
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Am looking for an exit strategy on this one. "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
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Rank: Elder Joined: 9/20/2015 Posts: 2,811 Location: Mombasa
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murchr wrote:Am looking for an exit strategy on this one. Step out quickly. This stock is primed for a drop with a bang! It missed investor expectations evidenced by a persistent shrinking in share price. John 5:17 But Jesus replied, βMy Father is always working, and so am I.β
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Rank: Elder Joined: 7/22/2008 Posts: 2,695
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I hope it never happens but just to cover all bases let me ask, do petrol stations have insurance against political violence? If say somebody demanded haki yetu and a petrol station was looted and set on fire are they covered by the insurance?
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Rank: Elder Joined: 12/4/2009 Posts: 10,639 Location: NAIROBI
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Wonders never cease to amaze VVS and Obiero now speaking the same language and on the same boat in kenol kobil Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 1,996 Location: Kitale
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Spikes wrote:murchr wrote:Am looking for an exit strategy on this one. Step out quickly. This stock is primed for a drop with a bang! It missed investor expectations evidenced by a persistent shrinking in share price. hebu mtoke haraka ndio sisi wengine tuingie! Towards the goal of financial freedom
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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sparkly wrote:Kausha wrote:Certainly one of two excellent businesses on the NSE whose management is able to read, internalize the challenging environment and respond with brilliant execution.
The humility in Ohana is very admirable. I know of a few other CEOs who would be gloating and giving countless interviews or collecting PHDs on the back of such a recovery. I believe the media need to shine the spotlight on David for the remarkable turnaround especially coming in the wake of all that illumination that was wasted on Jonathan Ciano. Which is the other? Bil Akota Tinende  In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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KenolKobil FY 2016 net profit up 19%
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