"In the year under review, there was an increase in exchange losses in 2011 by K.Shs. 582M over 2010, mainly arising from fluctuation of local currencies in most countries of operation. Due to the rapid and steep Kenya Shilling fluctuation against the U.S. Dollar,
Kenya operation suffered the highest exchanges loss in the year, of K.Shs. 982M, which included substantial Realised losses on hedged forward positions taken on K.Shs/USD exchange. The effect of Realised Loss started in the month of December 2011 and spilled over into the subsequent Financial Year, of which effect, can be seen in Statement of Comprehensive income."The above is an excerpt from KK 2011 annual report pp 4.
Saw on Twitter the following.
@oleturana#STOCKWATCH #KenolKobil H1 earnings "under pressureā after maturing hedging contracts led to FX losses #JacobSegman via @Bloomberg
#STOCKWATCH #KenolKobil "Sales have gone up significantly in Q1, but suffering FX loss on forward contracts" #JacobSegman via @Bloomberg
#STOCKWATCH #KenolKobil currency loss rose to KES1.2Bn ($14.5M) in 2011 vs KES573M in 2010 #JacobSegman via @Bloomberg
Just hope KK will come out strong.