Great, the great KK is combing its hair again using a comb than fingers. They have now a Chairman to be and a CEO aka Segman who will not tire b4 he put KK where it belongs. With all that I expect 50cents fy dividend, or a sale of company or partner. With the new Gova we might see project Chui partnership of NOCK-KOBIL! Expect a Rally to 12Kes soon.

No net profit which means Q1 EPS is still negative! Kwani segman thinks we don't care about depreciation, interest, tax and amortization???

All that talk about non recurring restructuring expenses will destroy any 2013 earnings

JIS gives updates...heck he was giving updates last year when thing were going wrong...if you read the updates keenly things were messed up last year.

1. EBITDA means Earnings Before Interest Tax Depreciation & Ammortisation

2. EBITDA=is equal to Operating Profit

3. From our definition of EBITDA above we can see that KK has made a profit after catering for admin & operating costs and forex losses which amounted to Sh2.2Bn in H1 2011. Note I'm using H1 2011 because H1 2012 was an anomaly due to the huge forex hedge losses.

4. From EBITDA we only deduct two items to get Pretax Profit/Loss
A. Finance costs
B. Depreciation & Ammortization
These amounted to Sh1.48Bn in H1 2012 when interest rates were probably at an all time high. Expect that figure to be much lower in H1 2013 if the current downward adjustment in lending rates & tight inventory control are to go by.
5. Lets assume this EBITDA is Sh2.5Bn & Depreciation & finance costs remain at Sh1.48Bn...it easily translates to a pretax profit of Sh1Bn still lower than what KK used to do.
6. In 2013 we are looking at getting back on the road...its a recovery year...it can be weak or strong but I expect a strong recovery. A FY EPS of Sh1 is strong...this could easily jump to Sh2.5 in 2014.
7. Do I like KK more now? Yes I do. I think KK is now ready to operate in a price control downstream environment.

@the deal what if EBITDA is just +50 cents or 1bob... Isn't that a positive result??
What then would happen to the net result??

Buy 100 shares on Monday & bring the Contract Note with you to the AGM. Then tell him yourself.

[url=http://www.nation.co.ke/business/news/KenolKobil-to-sell-assets-to-pay-debts/-/1006/1863584/-/iqqv4az/-/index.html]“In an effort to specifically reduce the current debt burden, the company continues on a fixed assets review which will include the sale of non- and under-performing assets across the group,” said Jacob Segman, the company’s chairman and group managing director.

In the year ended December 2012, the company had fixed assets valued at Sh8.1 billion — most of which are equipment and land — while the total interest on loans stood at Sh2.3 billion. Kenya’s largest oil company by revenues said it will also cut down on its borrowings which stood at Sh439 million as at the end of last year.

The firm also plans to engage lenders with a view of renegotiating the terms of servicing some of its loans.[/url]

#KenolKobil return to profitability............tweet from a business reporter

Bloomberg quotes a report by old mutual that say Kenol is a Buy and Total sell. who has the report???

old-mutual-starts-coverage-on-kenolkobil-with-buy-total-on-sell http://mobile.bloomberg....h-buy-total-on-sell.html