BOC Kenya Plc, a leading supplier of industrial, medical and special gases in the region has registered Ksh19 million profit after tax for the half-year ended June 30, 2019, a 66 percent drop from Ksh57 million that was recorded over a similar period in 2019.
The firm’s Managing Director Marion Mwangi while announcing the results attributed the firm’s declined in profit to short-term outage of key raw material and unscheduled plant downtime that impacted availability and cost of finished goods.
“These results were also impacted by reduced supply to some public sector customers due to long overdue debts and lost sales as a result of the illegal filling of the company’s cylinders”, Ms. Mwangi explained.
She however exuded confidence that the second half year results will improve as the plant availability has been fully restored which will commensurate positive impact on production costs. She said the supply of the key unavailable raw material has been resolved and steps taken to mitigate against recurrence. “In addition, the long-standing problem of illegally filled cylinders is being managed with the assistance of regulatory authorities” she added.
The BOC Kenya boss assured the market that the Board of Directors will continue to take measures to safeguard shareholder value by ensuring that company operations reflect a high level of efficiency and productivity. “In this regard, we have implemented Continual Improvement, KAIZEN across the organization that will ensure that the organization is operating on Lean principles” She assured.
The revenue for the six-month period ended 30 June 2019 was up 1.6 percent compared to the same period of 2018. “We’ve shown in volume growth in 2019 with focus on the right channels and we are geared to continue with the trajectory over the next few years along the country’s Big 4 Agenda and the oil and gas upstream opportunities that are developing in our region”, she explained.
The firm which has been listed on the Nairobi Securities Exchange (NSE) for 50 years used the occasion to celebrate its key milestones which have seen it maintains market leadership in the region over the years.
Commenting on their 50th Anniversary, Geoffrey Odundo, NSE Chief Executive noted that, “ Today, we celebrate a company that has continued to grow in Kenya and other regional markets over the last five decades since listing underscoring the company’s commitment to delivering sustained value to your shareholders and the economy at large”.
“As a market, we are committed to continuing playing an active role of connecting opportunities to capital through the provision of a world-class trading facility for local and international investors and issuers looking to gain exposure to Kenya’s and Africa’s economic growth” he added.
Despite the challenging operating environment, the Board of Directors declared an interim dividend of Ksh 2.35 per share for the six-month period ended 30 June 2019 (2018, Ksh. 2.35), to be paid out on or about 15 October 2019 to shareholders on the register at close of business on 27 September 2019.