Good Start Ohana *applause*

Resolution of Commercial Dispute Between KenolKobil Limited and KPRL

The Management of KenolKobil Limited is pleased to announce that the Company and Kenya Petroleum Refineries Limited (KPRL) have reached an amicable agreement to settle all outstanding dispute matters between the two Organizations.

Consequently, the Ministry of Energy and the Energy Regulatory Commission has reinstated KenolKobil Limited in the Open Tender System (OTS) as a buyer and seller in the supply of petroleum products for the Company in Kenya and the neighbouring countries.

The reinstatement follows successful deliberations between the Management of KenolKobil and KPRL that were facilitated by the Energy Regulatory Commission. The Agreement reached will provide for discontinuation of the law suits and claims lodged against each other.

KenolKobil’s Management takes this opportunity to thank the Board and Management of KPRL, led by their Chairman, Mr. Suleiman Shakombo EGH and CEO, Mr. Brij Mohan Bansal, for their positive contributions and the show of good faith that led to the successful conclusion of the discussions.

In addition, the Management also recognizes the instrumental role played by the Ministry of Energy & Petroleum, led by the Cabinet Secretary for the Ministry, Mr. Davis Chirchir, and the Principal Secretary Eng. Joseph K. Njoroge, and the Director-General of the Energy Regulatory Commission, Eng. Kaburu Mwirichia, for facilitating and fostering the cordial spirit of the discussions. We take this opportunity to express our sincere gratitude to them.

We look forward to maintaining this positive spirit of compliance and consultative dialogue in our future dealings with the Government, KPRL, our business partners and other Industry stakeholders, for the greater good of the country and the oil industry.


David Ohana
GROUP MANAGING DIRECTOR

http://www.kenolkobil.com/index...olkobil-limited-and-kprl

Kenol Kobil reinstated to open tender system
http://www.nation.co.ke/...0/-/qdxnrz/-/index.html

told ya.hapa iko kitu, brewing deeper even.

Am having a should have moment....sigh

As a potential Suitor who's been looking to Bid, solution of the claims & counter-claims is a huge barrier cleared. Now I can focus on the real stuff, the business. I also have to be aware that more eyes are on KK pursuant. The more I wait & the business recovers/thrives the more the premium. When we will see any action is still a matter of time indeed.

The big seller is still in the market...interesting trade today.

This is a sweet quick play exit 11

@mweke. in retrospect that nock story holds more water now. kk is now all of a sudden a gava darling. but its still unlikely coz of the pan African nature of kk business that part doesn't make sense to me.
bottom line, the new management is ready to play ball

@Aguy, I gather that NOCK is looking at buying some of the "idle assets" of KK. It’s like NOCK is cannibalising KK but i think and trust Ohana will play his game well. I like the way he is dealing with industry players.

1H expected to be breakeven PAT [positive EBIDTA] but 2H profitable on lower borrowing costs. And 2014 will be time to sell the firm or look for a strategic investor.

@hisah I am a buyer and on fundamentals. And thankfully managed to acquire small lots when I can. I will miss Segman but he has laid the groundwork for the future that Ohana is building on.

1) Property/Asset sales of $40mn in 2013/14 expected according to the Management [see Annual Report & discussions at the AGM] and proceeds to lower debt.
2) No more dividends until the debt is significantly reduced.
3) Dumping unprofitable (low profit) lines of business including aviation, fuel oil & bitumen unless payments are assured or in cash.
4) Re-focus on lines of business without price controls.

If Ohana can't show progress in 9 months i.e. release of 2H 2013 results as well as a positive update on 1Q 2014 operations then time to say bye-bye.