This is not good and wonder how we should view KenolKobil prospects? am buying KK right now but i wonder if the industry is doing well going by these results

Number of Issued Shares?

Share Price?

Market Cap?

those who are running kk are optimistic

My point is why waste time running like a chicken for a turnover of kshs 170 billion and make a profit of 1.4 B while you can be lean efficient dealing in 91 billion at nearly the same profit??? if you look at the profit margin you gotta give it to KK.

@madebe......i support your views on this 100%......You have to give it to Ohana and his team for their efficiency....imagine if they employed the same principles they are using now and they had Total's turnover.....Total would bury their heads in shame....

In my opinion, the major shareholder recoups its money from the "Technical Support/Licensing" offered to Total Kenya. So the minority shareholders maybe the losers.

Edited with thanks.

Low margin, high turnover businesses are not uncommon.
I will take a Low margin, High turnover business if the RISK is minimal but much lower than my margin.
If everyone picks the high margin business, then what happens to the low-margin businesses?
Is is much more work to import a cargo of petrol making 1/- on 10 million liters vs selling 1 million liters in a petrol station at 10/- margin?

Walmart is a firm that uses the Low Margin, High Volume strategy. It has done very well. It is the USA (& the world's) largest retailer by volume and profit. The Waltons [heirs of Sam Walton] are the richest family in the USA.

Apple has a High Margin, Low(er) Volume strategy. BTW, I am not saying 'low volume' because it sells a lot of phones, computers, etc. I say 'Lower' because it chooses not to sell more at a lower price to compete with the Samsungs, Nokias and Dells.

BTW, Walmart also sells Apple products.

Both are successful because they are well-run businesses. The managers of both understand risk. They manage risk. And make money from providing what their customers want.

Wazua is a forum where one can get glib one-liners or discuss topics deeper. I prefer the latter even though I often indulge in the former!

Total took on debt to acquire Caltex. It did not perform as well as expected due to depreciating KES, high interest rates and volatile fuel prices.
Then Total Outre-Mer came in & converted Debt to Preferred Equity to satisfy the Debt Covenants.
I think Total tried a Rights Issue (needs confirmation) along the way but Kenyan shareholders didn't fully participate.
(Something similar happened at EABL where Kenyan shareholders didn't exercise their Rights & Diageo took up the shortfall)

I believe the Preference Shares have been added to the Ordinary Shares to give that percentage ownership. And yes, there have been rumors that Total would find it easier to go private vs being listed.

In the FMC sector, privacy (& secrecy) are valued so perhaps one day both Total and KK will go private. Well, for KK... I sort of hope that happens at a premium!

did investors forget about this? for some days total kenya share has been suffering lack of demand, their was a day the only demand available was from me almost the whole day! i have even managed to get at 22.75. did i miss some crucial information which will heavily cost me? im starting to get nervours