KenolKobil Limited, one of Africa’s fastest growing indigenous oil marketing conglomerate has released a cautionary statement.
The oil company wishes to caution its shareholders and the general public that that they have been informed that the key shareholders of the listed company have signed an exclusive agreement with Puma Energy for the sale of their majority shareholdings in the company. The company also wishes to inform its shareholders and the general public that any sale of shares is subject to due diligence, regulatory approvals and price confirmation.
KenolKobil currently operates in ten countries and is one of the largest oil marketing companies in Central, Eastern and Southern Africa. With over KES 200 billion in sales in 2011, 400 retail service stations and 557 employees, this big oil company has been doing “small” profits, reporting KES 3.27 billion in net profit in 2011 and KES 1.91 billion in 2010.
Big in sales, but small where it matters
A company doing KES 200 billion in revenues in undoubtedly big. The problem comes in when you’re doing KES 200 billion in sales but only KES 3.3 billion in net profits. That comes to around 1.65% in net profit margins. That is absolutely horrible! The company only makes KES 66 each time you spend KES 4000 on filling up your car. No wonder the fuel marketers are never heard complaining whenever the ERC raises fuel prices. They aren’t making money!
So KenolKobil is being sold off to Swiss firm Puma Energy, a big investor in Africa’s oil with interests in Angola’s Sonangol, the national oil company. The company is a subsidiary of Trafigura, an Amsterdam-based multinational that likes its base metals (iron, nickel, lead, copper et al) and oil. Hopefully they can make some money for KenolKobil’s shareholders.