In October last year, Total Oil held a cocktail party to reassure shareholders after some dismal 9 month results.
Now that the 2006 results have been finalized, here are some other things shareholders were told at the event.
– Company experienced difficulty with upfront payment of taxes and ineffectiveness at the oil refinery in Mombasa
– Total had made a provision of 100 million shillings for an oil marketing case, but that very day the high court had ruled in their favor.
– The Chairman (Mr. Nguer) promised that the results at the end of the year would be much better than the 9 month ones
More comparisons to Kenol: he said that Kenol share price was 115 shillings in April and 109 on that day in October, while total had similarly changed from 44 to 37/38. He also said that while their operations were down 9%, Kenol’s were down 30%. [Today March 2007 – Kenol is 85 and Total 30]
– Commenting on Mobil oil exit and entry of Tamoil (of Libya) to Kenya, Nguer remarked that the sector was stable but that oil marketing was unique in Kenya and some multi –nationals could not understand this.
– On threats by Minister of Finance to fix oil prices, he said he did not see the country going back on its 1994 deregulation of the sector prices
The surprise announcement last week that geothermal development company would be hived off from Kengen prompted a look back at the company’s pre-IPO prospectus. And sure enough in the future outlook for the company, the Kengen prospectus does mention the state will set up a geothermal development company to undertake high risk activities such as exploration and drilling. It will be financed by appropriations from parliament and will take over Olkaria from Kengen
– Regulator (ERB?) will be empowered to set the price of fossil fuels bought by Kengen i.e. diesel. This is likely to affect independent power producers.
– New rural electrification authority. Any impact on KPLC?
– Kengen to bill KPLC at 2.36 not 1.76 per kWh which has become a hot button issue in this election year