dunkang wrote:muganda wrote:The difference between Total and KenolKobil results is interest expense.
Finance costs
Total 278m
KenolKobil 1.671bn
Borrowings
Total 2.494bn
Kenol Kobil 14.854bn
So what I'd like to know is, who are KenolKobil's bankers?
DividendsTotal (K) 0.6/-
KenolKobil 0.1/-
Profit Before TaxationTotal (K) 2.1B/-
KenolKobil 0.56B/-
And someone was cursing the KES 5.2B interest-free preferential shares "LOAN"???? Now you know!!!!!
TOTAL preferential shares are yet to be paid back, so dont celebrate too early and they are worth 9.0b. 5.2b was the second tranche.
Total's results are better and more promising than those of KK, a tip. whenever you calculate TOTAL's EPS, NAV, P?B. please do not forget the preference shares! Until such a time that they'll be paid out. Its a major dilution that's easy to ignore.
TOTAL's route will cost them less in the long term and the dilution is directly on the share price. KK's method will hurt the bottom line, but impinge less on the share itself, the market will take care of that. Like its already doing today.
What i dont like about the pref shares is that total's future earnings and esp balance sheet are dependent on the whims of the pref shareholders, they can spoil the party AT ANY TIME by demanding payment. While for KK, its more predicatable pain of interest payment. I dont like both methods. But i have to admit TOTAL is more fairly valued at current prices and with less encumbrance to grow going forward
The investor's chief problem - and even his worst enemy - is likely to be himself