Total Energies Kenya has recorded a Ksh3.02 billion profit after tax for the year ended 31st December 2023.
This is a 23.6 per cent jump compared to the Ksh2.44 billion it posted in a similar period a year earlier.
Total has attributed the performance to an increase in other income to Ksh2.07 billion from Ksh1.58 billion the previous year majorly due to investing activities, increased revenues from diversified investments in Shops, Food and Services (SFS) and income from partnerships with third parties increased in the year compared to the previous year.
Total Kenya’s gross profit soared 34 per cent to Ksh12.8 billion from Ksh9.5 billion in a similar period the previous year on a lower lag in price adjustment.
Net revenue generated for the trading period climbed 17.4 per cent to Ksh120.7 billion from Ksh102.8 billion in a similar period in 2022.
However, operating expenses for the fiscal year ended December 31 2023 surged to Ksh8.04 billion from Ksh7.11 billion the previous year on the back of inflation impact on local costs coupled with forex impact on imported goods and services due to the weakening of the local currency.
Total Kenya’s net finance costs for the trading period stood at Ksh2.31 billion from Ksh920 million in a similar period the previous year on high capital requirements coupled with the increased cost of borrowing.
“During the year, the business environment remained challenging due to volatile macroeconomic conditions. The international oil and gas prices declined while local currency depreciated against the US dollar due to global shifts in macro-economic and geopolitical situations,” stated Total Energies Kenya in its financial results.
“The Company continued to invest in line with the business strategy to enhance its logistics, network and continue to build a profitable and sustainable multi-energy Company,” it added.
Total recorded a foreign exchange loss of Ksh385 million against the gain of Ksh147 million registered in 2022 attributed to the depreciation of the local currency during the trading year.
Looking ahead, Total is committed to growing its business in the country due to its vast experience in the energy industry and a broad range of products and services amid the challenges in the business environment weighed by volatility and high levels of global fuel prices.
“The Company will continue to increase its focus on renewable energy sources and sustainable solutions to meet the growing demand for clean energy in Kenya. All these are key to increasing the value and shareholder returns while maintaining a strong financial position,” stated Total Energies.
Total has recommended payment of a first and final dividend of Ksh1.92 per share payable on or around 31 July 2024.