Got a good point there

why are you not wondering about those seeing the potential to buy in bulk at that price?this could be the right investors entering

You two need to know the company!

To start with, you won't get Q1 results.

Secondly, there is alot of room for more cost cutting and increase in sales emanating from lower fuel prices.

Let's talk at 1H15 ...

true senior counsel,lots of sellers as always that old man could be a seller

There may not be many sellers soon. Remember the majority owners combined are barely above 52% and they would want a controlling block to be able to negotiate a sale.

BACK TO BASICS
KenolKobil 2014 net profit up 95pc, sees more gains in 2015

Weh,
I think this by far is the biggest bus in wazua investor page led by realtreaty the eternal optimist.
All metrics of those results have been analyzed to fine detail.
Now I will just post a chart here shortly so cartoonists can polish off.

1) In whose books (e.g. KK Kenya, KK Tanzania, etc) are the deferred tax assets?
2) Which subsidiaries make a profit? The parent cannot pass on losses to a subsidiary and vice versa so sadly the profitable entity (e.g. Rwanda) pays taxes while a group member (e.g. Tanzania) is making losses.
3) Kenya had lots of losses (hedges) which may not be recoverable in the near future and the deferred tax asset might be written off. Let's hope Kenya makes some huge profits in 2015 to offset the Tax Deferred Asset before it expires.

The 'group' = Kenya which owns the subsidiaries.

KenolKobil Limited is the 'Company' and owns the subsidiaries. The Company is a legal entity.The 'group' is not a legal entity but is comprised of the Parent aka Company and all its subsidiaries & associates. One cannot sue the 'group' but all or individual entities within/comprising the 'group'...

http://www.kenolkobil.co...DOWNLOADS/kk%202013.pdf (Page 59).

The traded shares are of KobilKenya Ltd (the 'Company') which also happens to be a trading/operating entity (not just a Holding entity like I&M Holdings).

Look at Pages 20 (Consolidated which is the Group) & 21 (Company which relates to the Kenyan entity without the subsidiaries). Please note that most of the Tax Deferred Asset(s) belong to the Kenyan entity.

Page 52. Compare Group vs Company. The primary reason for the increase is due to the severe losses made in 2012 which allowed for a 'Tax Credit' but since KRA doesn't refund Tax Credits arising from operating/business losses), the firm carries it as a Deferred Tax Asset hopefully offset by Taxable Profits in future years. I do not know how far into the future a firm can carry the Tax Deferred Assets. Essentially, a firm can lose the 'asset' and a prudent analyst will exclude the asset unless there is a good chance of it being used.

Page 46. This shows how the Tax Deferred Asset came about i.e. the huge Loss in 2012 x 30% Tax Rate.

Subsidiaries:
Kobil Petroleum Ltd
Kobil Uganda Limited
Kobil Tanzania Limited
Kobil Zambia Limited
Kobil Rwanda SARL
Kobil Petroleum Rwanda Limited
Kobil Ethiopia Limited
Kobil Burundi SA
Kobil Mozambique

Until we get the Annual Report for 2014:

1) We cannot be sure what the share of profit belongs to KK-Kenya vs the individual subsidiaries.
2) In addition, some profits (285mn Note 10 - 2013) e.g. profits from properties sold would not be taxable in 2014. BTW, there are some expenses that are NOT eligible/deductible (83mn Note 10 - 2013) as expenses for tax purposes.
3) The life of the Carried-forward Tax Loss aka Tax Deferred Asset. I do not know the rules/regulations. If KK plays it (very carefully) smart, it could use transfer pricing to transfer profits to the Kenyan entity.
4) The DTC has DECREASED to 2.2bn (2014) from 2.6bn (2013). That's not negligible. And roughly the same amount as the Income Tax Expense assuming most profits (& tax payable) was from KK- Kenya.
5) KK - Kenya would need to make approximately 7bn in PBT (from operations) to use up the DTC. Sadly, that's a long way to go.
6) My gut tells me TZ contributes to the losses too. And if KK sells the assets at a loss then that DTC is worth zero to KK.
7) I am unable to (fully) reconcile Income Tax Paid as shown in the Cashflow Statement vs the Income Tax Expense or movements in DTC.

I hope the above helps.

sell orders heart breaking, come 8 come