@guru - The question is one of 'cost of holding stocks'

- I like KK's management. Why do I defend them? Coz they are smart!
- I am sure KK knew the crap with KPRL was coming so they made nice with KPA & KPC [storage + imports]. Then they must have filled up all they could. Nevertheless, within 2 months they must have depleted their stocks.
- OTS has reduced the 'speculation' that OMCs can engage. Not 100% but significantly.
- The cost of storage in Kenya is significant. KK does not have a huge tank network. A pity. I have engaged KK in this matter. I wish KK would have bought the 'unfinished' Triton tanks.
- Financing costs on $100 oil > $50 oil

BTW, I think KK will have a great 2H coz they were able to jack prices to 99/- (selling 'old' stocks) while standing aside while MoE, KPRL & other OMCs could not match KK's heft at importation or distribution.

Also the financing costs will be lower as Kenya's interest rates have dropped vs 2009...

What I am saying is that LOW oil prices are better for KK coz 'overall' they can sell more at better margins.

I have waited to read a post by wondergirl in vain,

Hey Mlennyma. Looks like I'm a lass of few words, or should I say few posts?

I told you. This Segman dude was just bullsh*tting. We shareholders lost big time in that unscripted, unrehearsed circus and no one can convince me otherwise.

OK. I am sure you can ask him during the AGM...

BTW, what is your source of information?

Here's the proof C/P. Old story but you'll agree that KK was the loser in this hullabaloo and now they are paying the new rates after all that! Aren't you even a bit annoyed with this dude?

Sept. 8 (Bloomberg) -- KenolKobil Ltd., a Kenyan fuel retailer, said it is incurring “heavy losses” after Kenya Petroleum Refineries Ltd. stopped processing crude for the company.
“Our agreement with KenolKobil was terminated in July and we are not processing any oil for them,” Raj Varma, chief executive officer of KPRL, said in a phone interview today.

Four-Year Dispute

KenolKobil and KPRL have been in dispute over processing fees for the past four years. KPRL says it is owed 600 million shillings ($7.4 million) by KenolKobil, which in turn says it is owed 5.3 billion shillings as a result of losses incurred after KPRL withheld refined oil and prevented two ships from delivering crude ordered by KenolKobil.

KenolKobil’s contract for having crude processed at KPRL ended on July 12, Kaburu Mwirichia, director-general of the energy commission, told reporters today in Ngong, 18 kilometers (11 miles) north of Nairobi. As a result, KenolKobil isn’t allowed to import crude for sale within Kenya, he said.

“We took action telling them that they can do everything else, but cannot do the business of importing oil for use in this country,” Mwirichia said. “They can buy from other importers.”

Is this better?

By NATION CORRESPONDENT
Posted Thursday, October 28 2010 at 16:53

The commission, on October 14, 2010, gave Kenya Oil Company Ltd (Kenol) and Kobil Petroleum Ltd (Kobil) the licences for import, export and wholesale after the firm agreed to pay Sh634 million it owes the refinery.

Agree with you on the uselessness of our 'trusted' media.

Anyway, that aside, how comes Total never seems to generate interest or take advantage of situations?

We another large trade today 7.6 on the ritcher scale. If history repeats itself, we know what will follow....