http://www.businessdaily...10/-/hdrqq/-/index.html


headline in bdafrica should read "expresses interest" as a deal hasnt been concluded yet..

I think this is a great company to invest in because:

1. Of the above, growing market share constantly
2. Relatively cheap EPS was about 8.37bob last year(15 months)
3. Expected results should be good after the notice they came out with basically over-riding the previously issued profit warning for 1H
4. They should be recipients of Kshs 4.6B from KPC in damages, which amounts to 4 year PAT for the company, i understand from someone close to the matter that the KPC appeal doesnt hold any water. Even, if they pay Kshs1B per year, that basically doubles PAT without a blink of an eye.
5. Efficiency at KPC after the lawsuit and arbitration should amount to more efficient services from KPC and hence better margins.

However,
1.They have crappy Net margins, which is industry wide, but that should improve with better KPC services, better refinery processes as we only get 54% white fuel from crude as opposed to 86% in western nations due to refinery processes.
2.Finance costs, they should have these contained with the excess cash they receive from operating activities & KPC cash.

IMHO,If they cant do good business in kenya,what makes them think other countries are better? I think this company is headed the Olympia capital way,the management is obsessed with acquisitions.Lets see what it will do to their cash flow.

Even after the good news Kenol is not among the top gainers today.....
why?

UNGA 11.95 +9.63
WTK 229.00 +9.57
KAKUZI 95.50 +8.52
EXPRES 11.50 +5.02
SAMEER 9.50 +3.83

@horton is right on the money!!!

BUT most downstream firms including Total got hit with the huge variation in crude prices...

@horton,shh! Just do the necessary.

@VVS, true dat! Was just an observation. Interesting to note however, that even a 1% increase or decrease in NM can make a HUGE impact for shareholders. My sentiments are (going by the TOTAL results), this thing should have a stellar year, coz Total basically had a pretty flat turnover, they talk about a turnaround in 2H and their earnings(minus the acquisition costs an finance costs due to the acquisition) should have increased their EPS by 17% YoY(ie without the impact of the acquisition). Also, consider the fact that CVX assets in Kenya were a Loss making entity for years. This could also be a NAV play(if ur into that kinda stuff )

KK also did say, that their results for the year(thus far) have surpassed their expectations and that their finance costs have significantly dropped...

@cnn...my bad...im sorry! LOL Im pretty stocked up actually...& bila cash atm

@horton - ON KQ... I have explained my position in detail... but 2H will be much better...