Yes... I hope KK negotiated some tough conditions as regards quality & yields...

I would have preferred KK take it to court/arbitration. Not happy with the settlement...

Though I'm not privy to the terms of the settlement, I would expect that KK agreed to pay the Kshs 600m to KPRL either in tranches or in premiums over and above the usual processing fees. Of course this is if at all the payment of the Kshs 600m is part of the settlement agreement.

Either way, KK's bottomline may suffer more than the other OMC's! Hopefully this can give me a chance to buy more!

Stop hating on Segman... Anyway, I am confident that KK will come out smelling like roses!

KK will not have to pay KShs 600mn even though there may be higher fees going forward thus lower margins...

Lakini, KK showed KPRL, GoK, ERC, KPC... that you don't eff around with KK... Otherwise, you can expect increases in fees all the time...

Lakini the 600mn does NOT excite me!!! I was waiting for 4bn...

KK has 1.5bn shares @ 600mn = 0.30 EPS (additional PAT)
4bn would have been 2.00 EPS (additional PAT)

Agreed. We would all have been happier with 4 billion from KPRL but I always considered this to be a long shot, just like that with KPC. If KK wins it will be good but I doubt whether they will get the amount claimed.

My investment case for KK is built on the profits and cash flows being made from operations which are pretty good. If you will recall many of us expected KK's share price to soar to as much as 15 before the problems with KPRL and its enforcers arose. This was primarily based on its very impressive H1 2010 results.

http://www.nse.co.ke/new...enolKobil%20October.pdf

Poor show from KK. There is a stick to your guns and there is this. They were in a lose lose situation and dragged this thing on unnecessarily. I think heads should roll for this bubu as I'm sure they lost a lot more than 600m in lost business during the dispute.

I made my cash and got out. Now only holding onto 100k shares residual.

@vvs, thanks or the basic buy sell and profit philosophy. However, my point was due to loss of business by not paying the 600m ie not in the loop during the 2 month period, running out of stocks, paying a premium to other sources for fuel, missing out on the OTS action, must have had a significant impact on KK bottom-line. Not sure what you are on about sir.

Given that the loss of business should now be over, i doubt we would have gotten this share at the such a discount should this not have happened... i bet i am still good with it.

@Horton,
Its good you already made your money, but i would believe there's still some more money to make with this share.

I have tried to look at this firm (KK) inside out as much as possible... I have seen the growth outside Kenya whether in Uganda, Tanzania, Zambia, etc... The have 80 stations in Ethiopia [price controls so very low margins] waiting to explode...

@Horton. At worst, I would expect that KK broke even during the "hostilities". Note that a lot of independents do not participate in OTS and also source product(s) from the majors, yet they continue in business.

H1 2010 EPS was 80 cts. If we assume Zero EPS for Q3 but Q4 continues at the same pace as H1 (i.e. 40 cts EPS), we can look forward to an EPS of Kshs 1.20 which is a PE ratio of less than 10 and lower than that of Total. Total's normalised Headline EPS will probably come in at about Kshs 2, based on H1 2010 - a PE ratio of 15.4 at today's price of 31.25.