Importing refined petrol is far cheaper than processing at KPRL (due to inefficiencies, delays in accessing the petrol etc). Hence the Ministry of Energy enforced compulsory processing of crude at KPRL. Without this KPRL will close as no oil company will process crude.

If the processing agreement is terminated and KK is allowed to directly import its quota from overseas, then KK will stand to gain from higher margins on imported refined petrol.

But this scenerio is unlikely as it will create a precedent that will eventually lead to the closure of KPRL.

My two cents is that the Courts/Ministry of Energy/arbitration will not allow this to happen.

BTW: KK also has/used to have a debt (in hundreds of millions) with KPC on similar note to KPRL one (am not refering to the award granted to KK)

@ GG who is the majority shareholder @ KK???

@VVS

If my memory serves me right, Bob said Engen and KK cannot buy out Shell/BP due to indigenization of Multinational companies. That should be a one week odl news.

@Segman (I know U don't read Wazua)
The Board of Directors has appointed Mr. Jacob.I. Segman as the Chairman of KenolKobil Limited effective 7th April 2010 after being in acting capacity since early 2006.

Mr. Segman has over 30 years’ experience in the oil industry, and is particularly conversant with the African Oil industry. After joining the company in January 1990, he moved progressively in various management positions, through to his appointment as Group Managing Director in 1999. He holds a BA Degree in Economics and an MBA.

If you have an MBA, then, you should know that a Company should not have the CEO being the Chairman at the same time due to conflict of interest. Yes, you have done well for the company but there is a possibility that someone else might do better as a CEO if you want to retain the Chairman's seat (Hoping you don't have shares in the company as Chairmen are supposed to be independent directors).

Or did Segman resign as the CEO? I worry for people who try to reinvent the wheel instead of innovating on it for effficiency.

@the deal, look at the profile (nationalities) of the directors, check out which ones are his inlaws, and figure out who has vast interests in the nationality's home country.
@surealligator, that matter was raised at the AGM and Segman said he is the group CEO,dealing mainly in strategy.
Ohana is the MD for the Kenya operation, like each country has its own MD.

Ohana is the General Manager, not MD. For all practical purposes, Corporate Governance and Social Responsibility requires shareholders to kick out a character that thinks he is the only one who can run a company as Chairman of the board and at the same time be the CEO (MD). Conflict of interest arises as the board is supposed to hire and ensure management implements the board's strategy. Now, if you are the chairman of a board that is supposed to appoint an MD and you achieve in doing so, who would the MD be answerable to? Ati the chairman can hire and fire the MD while he is the MD himself. Nonsense. Conflict of interest is so much that it becomes a huge loss to shareholders. Enron was there, Palmarat etc and all were brought down by insider irregularities cultivated by the Chairman cum MD. Are we reinventing the wheel all over again.

@surealligator - What's with your location showing as somewhere in Afghanistan???

On the other hand Total gross profit in quarter 1 is 300%up.That is a marker on what to expect of KK at half year.If it goes down to around 90 i would still buy more.

Where are these Total numbers? If they are that good maybe they might cover their finance costs and possibly pay 1/= which I'm not expecting.

LOL