PERFOMANCE

Kenya Pipeline pays Sh2.7bn dividend to state as revenue grows

Total earnings for 2018/19 financial year was Sh31.5 billion.

In Summary

•Throughput volumes increased to 7.4 billion litres compared to 6.6 billion litres recorded the previous year.

•Cash flow reserves increased from Sh5.3 billion to Sh12.9 billion during the period under review .

Fuel tanks at the Kenya Pipeline Company in Nairobi's Industrial Area..Photo/FILE
THE ASSETS: Fuel tanks at the Kenya Pipeline Company in Nairobi's Industrial Area..Photo/FILE

The Kenya Pipeline Company (KPC) has paid a Sh2.7 billion dividend to the government as its revenues for the financial year 2018/19 grew by 14 per cent.

The company's total earnings closed the financial year at Sh31.5 billion on the backdrop of increased throughput volumes of 7.4 billion litres of fuel compared to 6.6 billion litres recorded the previous year.

Speaking at the company's annual general meeting on Tuesday, chairperson  Rita Okuthe said cash flow reserves increased from Sh5.3 billion to Sh12.9 billion during the period under review .

The company's asset base stood at Sh135.6 billion. The company also reported a profit before tax of Sh3.2 billion for the period ended June 30, 2019.

"Our continued growth has enabled us remain a self -sustaining commercial entity; financing our operations. We are committed to support the government through the exchequer to deliver on its mandate,"Okuthe said.

KPC Managing Director Macharia Irungu said over time, the company had provided a good return on investments to its shareholder.

"We have grown to be one of the largest parastatal in Kenya. During the last eight years, we have generated over Sh80 billion in profits before tax and paid over Sh 50 billion in taxes to the government during the period,"Irungu said.

He said completion of three major projects including the Mombasa-Nairobi pipeline (Line 5) and additional storage tanks in Nairobi during the 2017- 2018 Financial year, positioned the company as a strategic player in storing and transporting refined petroleum products in the country and the region.

The Company received unqualified audit opinion from the Office of Auditor General for the period under review.