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Total Kenya FY 2014 PAT grows by 8.5%
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mlennyma
#11 Posted : Wednesday, April 01, 2015 10:56:31 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
mulla wrote:
madebe wrote:
VituVingiSana wrote:
madebe wrote:
TOTAL - PROFIT 1,424,088,000 Turnover 170.7 Billion
KENOL -PROFIT 1,091,284,000 Turnover 91.3 Bollion


Total does OTS cargoes. High volume, low margin. Not a bad business if you can source cheap financing.
KK did very few OTS cargoes in 2014 as it tried to reduce debt.
KK ditched the low-margin businesses (e.g. aviation fuel) in 2014. The volumes and turnover has dropped vs 2013.


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....

it has come so soon to start comparing total with kk whose profit is almost at par,smile while kk reduced debts by 4b ..conclusion. ...kks management knows what they're doing
"Don't let the fear of losing be greater than the excitement of winning."
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h2s
#12 Posted : Wednesday, April 01, 2015 11:25:25 AM
Rank: Member

Joined: 7/20/2012
Posts: 141
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.
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  | | Edit by user: Wednesday, April 01, 2015 12:53 PM | Reason: Not specified
jerry
#13 Posted : Wednesday, April 01, 2015 12:01:24 PM
Rank: Elder

Joined: 9/29/2006
Posts: 2,570
h2s wrote:
In my opinion, the major shareholder recoups its money from the "Technical Support/Licensing" offered to Total Kenya. So the minority shareholders maybe the loosers.

Losers you mean?
The opposite of courage is not cowardice, it's conformity.
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h2s
#14 Posted : Wednesday, April 01, 2015 12:56:32 PM
Rank: Member

Joined: 7/20/2012
Posts: 141
jerry wrote:
h2s wrote:
In my opinion, the major shareholder recoups its money from the "Technical Support/Licensing" offered to Total Kenya. So the minority shareholders maybe the loosers.

Losers you mean?

Edited with thanks.
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dunkang
#15 Posted : Wednesday, April 01, 2015 2:30:17 PM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
A look at the shareholding structure is worrisome.



Why is firm even listed in the first place!!!!!
Receive with simplicity everything that happens to you.” ― Rashi

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VituVingiSana
#16 Posted : Wednesday, April 01, 2015 6:59:22 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
madebe wrote:
VituVingiSana wrote:
madebe wrote:
TOTAL - PROFIT 1,424,088,000 Turnover 170.7 Billion
KENOL -PROFIT 1,091,284,000 Turnover 91.3 Bollion


Total does OTS cargoes. High volume, low margin. Not a bad business if you can source cheap financing.
KK did very few OTS cargoes in 2014 as it tried to reduce debt.
KK ditched the low-margin businesses (e.g. aviation fuel) in 2014. The volumes and turnover has dropped vs 2013.


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.

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!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Wednesday, April 01, 2015 7:10 PM | Reason: Not specified
sparkly
#17 Posted : Wednesday, April 01, 2015 7:03:22 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
dunkang wrote:
A look at the shareholding structure is worrisome.



Why is firm even listed in the first place!!!!!


Add the preference shares to the parent company!
Life is short. Live passionately.
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VituVingiSana
#18 Posted : Wednesday, April 01, 2015 7:16:32 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
dunkang wrote:
A look at the shareholding structure is worrisome.



Why is firm even listed in the first place!!!!!

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!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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  | | Edit by user: Wednesday, April 01, 2015 7:19 PM | Reason: Not specified
dunkang
#19 Posted : Thursday, April 02, 2015 8:29:47 AM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
sparkly wrote:
dunkang wrote:
A look at the shareholding structure is worrisome.



Why is this firm even listed in the first place!!!!!


Add the preference shares to the parent company!

NOPE my virtual brother/sister.

The shares are as follows;

Ordinary Shares of 5/- are ........................ 175,065,000
Redeemable Preference Shares at 31.58/- ........... 123,478,388 (Debt of 3,899,447,000/-)
Redeemable Preference Shares at 15.71/- ........... 330,999,364 (Debt of 5,200,000,000/-)

Without the preference shares, Total Outre-Mer had a 47% holding.

The beauty of this redeemable preference shares is that ONLY Total (K) can set the redemption (call-out) date. That was a good arrangement on minority shareholders, otherwise, it could have been disastrous if otherwise.
Receive with simplicity everything that happens to you.” ― Rashi

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littledove
#20 Posted : Tuesday, April 14, 2015 3:33:44 PM
Rank: Veteran

Joined: 7/1/2014
Posts: 927
Location: sky
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






There are only two emotions in the stock market, fear and hope. The problem is, you hope when you should fear and fear when you should hope
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