Kenol is climbing slowly... lakini I wish we had 1Q 2010 results but from the Minutes, there are good things to come!

I hope CMA is not dragging its feet on the approval of the Split... Kwani, they knew about it for weeks! And KK probably sent it to them on 20th...

Why does CMA get involved in splits or bonuses??? KK is not raising cash!

@MV - True dat! Lakini, I see good tidings here especially as oil prices seem to have dropped so cheaper to import oil/fuel...

The lower the price of oil/fuel, the better for KK coz they can:

1) Sell more volume
2) Cheaper transport costs
3) Better margins

@mv_ufanisi, now that you've mentioned it, Segman said that their dividend policy is 35% but if he has it his way he would pay no dividend at all. They are looking at Mozambique, Malawi, Botswana and he will need cash for that.

Warren Buffett (Berkshire Hathaway) does not pay dividends coz he has places to invest... I think I wud be OK with no divs from KK as long as the returns are good from the price appreciation!

Forgive me all for going a bit off topic. In one of the threads hia i saw many of you guys talk of a 'prompt board'. whats that and how can it help me and which investment bank offers the service?

@Mv..............Its the same guy at NMG, he seems to be on a mission.

It's actually a different journalist. But structured negative information is suspicious. Anyways the people who sold last time regretted. So I'm sticking in until after the split and half year results.

@ maichblack in the daily nation article by KENNEDY SENELWA

Kenya refinery puts marketer on notice
A dispute is simmering between the refinery in Mombasa and KenolKobil over the threat to terminate the processing of crude oil for the marketing firm from July 2010.Kenya Petroleum Refineries Ltd (KPRL) has had a drawn-out dispute with Kenol Kobil over its non-payment of Sh456 million, as processing fees for crude oil being in contention.

The refinery has subsequently issued notification that the processing agreement between the Mombasa plant with Kenya Oil Company Ltd (Kenol) and Kobil Petroleum Ltd (Kobil) will cease on July 12.

Acquiring

Last July, Kenol changed its name to KenolKobil Ltd, after acquiring assets of Kobil. Earlier, the firms operated under a joint management agreement but were separate entities.

Kenol was a public listed firm and Kobil privately incorporated in the United States of America. KPRL’s chief executive officer Raj Varma said in a letter sent to chief executives of marketing companies that the refinery would not accept crude from Kenol and Kobil for processing from July 12, 2010.

“We therefore propose that the crude oil share of KenolKobil is allocated to the remaining oil marketing companies, as per normal sharing basis,” he said in the notice dated May 18, 2010.

A senior officer of KenolKobil who asked not be named, said the marketer had a dispute with KRPL pertaining to crude oil processing fees and could not comment further, as the issue was subject to legal proceedings in court.

In March this year, KPRL disclosed it had a major dispute with one firm over non-payment of Sh456 million and had issued the notice of termination of processing agreement.

“KPRL needs Ministry of Energy support in cancellation of the import licence of this marketer past that date, as the marketer will not be having a processing agreement as required by the law,” said Mr Varma in a presentation to industry stakeholders meeting in Nairobi.

Legal Notice No 197 of December 2, 2003 requires all licensed importers to process 1.6 million tonnes of crude oil at KPRL to meet 50 per cent of the country’s needs of petrol among other refined fuels.

Licensed importers share 1.6 million tonnes (MT) of crude oil (base load) annually, pro-rata their market share, as determined by the Ministry of Energy.

Crude oil is imported in ships with capacity of 80,000 MT.

The price did not fall as much as last time! Lakini, I am confident it will be OK coz:

1) KPRL is threatening KK but not cut off supplies

2) KK will sue KPRL @*#* off. And remember that KPRL now controlled by Essar so it might be a power play to force KK into a corner.

3) KK is very smart, they do things by the book thus the case against KPC. In any event, KK can still import refined fuel coz it is cheaper than using inefficient KPRL.

KK has been blocked by the zimbabwe's Government from acquiring BP and shells assets since the government wants them to be taken up by local investors.... i'm pretty sure thats why foreigners are selling...