@VVS really, poor results, really...!

Admittedly the results were late compared to expectations but a week or two later than usual can be excused seeing even the Lion is struggling to report on time. Good thing though the results were not a pot of salted soup as somebody was speculating. Thing is KK will have a stellar set of results for 2013. They have 1.3 to write back and about USD 15m assets are sold out. you also notice the trimmed 600m from opex in a quarter which had retrenchments as well. The KPRL reparation has crystallized but payability will be tricky.

KK's management seemed to indicate a poor 1H. That said, great to see them under-promise & over-deliver. 2H 2013 will be profitable but not that great [Operating Income] but... 2014 is where it is at! Lower interest costs will help BUT there were product outages at KK for 7-10 days in August. I use KK & many stations were dry. Not good. The sale of assets will bring in cash. Good coz the debt is high & any reduction is welcome. Though these are one-off gigs. We need biz back to normal including the low-margin but large volumes trading activities.

Agreed Chief VVS

Kenol's PAT belongs to the Common Equity Shareholders. Total Kenya Common Equity Shareholders have to share the PAT with the Preference Shares. The Total Common Equity Shareholders are lucky that Outre-Mer is lending Total Kenya 'cheap' money but it also means there is a 'cash call' waiting if the Preference Shares have to be repaid/redeemed.

My patience has finally been rewarded. Resumed my re-entry into KK today and managed a nice chunk of shares at 8.20 to 8.30. I am ready to hang in here for a while, as I suspect that it is still possible for the counter to slip below Kshs 8, if we get another scare in the market. Still, I believe most of the bad news is now fully factored in the price.