Oil marketing firm TotalEnergies Marketing Kenya Plc's profit for the year ended December 2024 fell 50.8 percent to Sh1.4 billion from Sh3 billion previously, due to lower sales.
TotalEnergies has retained its dividend payout at Sh1.92 per share. The dividend will be payable on or around July 31 to shareholders on record as of June 27.
The firm's net revenue from contracts with customers fell by 5.4 percent to Sh114.2 billion from Sh120.7 billion on reduced demand and higher indirect taxes and duties.
Gross profit was reduced to Sh8.9 billion from Sh12.8 billion even as the cost of sales dipped to Sh105.2 billion from Sh107.8 billion.
"In 2024, the business environment was challenging and mainly characterised by rising interest rates leading to increased borrowing costs," said TotalEnergies in a trading statement on Wednesday.
"The company's gross margins decreased to Sh8.9 billion from Sh12.8 billion, primarily impacted by reduced sales compared to the previous year, aggressive price competition and increased costs not fully covered in the margins."
The margins of the company and other oil marketers are expected to improve this year after the Energy and Petroleum Regulatory Authority (Epra) in March raised the profit margin they can make from petroleum sales.
The margin per litre on petrol was raised from Sh12.39 to Sh15.24 while that for diesel rose from Sh12.36 to Sh15.16. That of kerosene increased from Sh12.36 to Sh15.09.
TotalEnergies' other income rose by 35 percent to Sh2.7 billion from Sh2 billion and was attributed to investment activities, increased revenues from diversified investments in shops, food and services and income from partnerships with third parties.
TotalEnergies further gained Sh2 billion from the appreciation of the Kenya shilling, reversing a foreign exchange loss of Sh385 million in 2023 when the local currency took a battering. Additionally, the oil marketer trimmed its operating expenses to Sh7.5 billion from Sh8 billion, signalling the result of cost control measures.
During the period, TotalEnergies also cleared bank overdrafts worth Sh5.5 billion, helping to cut its total current liabilities to Sh32.8 billion from Sh41.2 billion earlier.
The company's finance costs meanwhile rose to Sh3.8 billion from Sh2.3 billion, reflecting an increased cost of borrowing by the oil marketer.
TotaEnergies said it would continue expanding its business and investing in renewable energy solutions, deeming the factors as key to increasing shareholder value and maintaining a strong financial position.
"TotalEnergies Marketing Kenya Plc is expected to continue growing its business in the country leveraging on its vast experience in the energy industry and a broad range of products and services," the company added.
"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."
