OOOH MR VITU VINGI SANA... you do not need to eat humble pie. I will buy you lunch Lunch at the Serena (remember Anyan'g Nyong'o) after reading this statement dated...till the end. Mind you it is from a journalist but from Segman himself. Make no mistake, the appeal came to soon though his intentions are very clear and especially from the last sentence. Allons-y

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27 Jan 2010

Notice to Shareholders: 2nd Half 2009 Earnings Update and Final KPC Arbitration Ruling

We publish our financial results twice in every Financial year. For the 2009 Financial year, in August 27th 2009, we published our half year results which showed that we had not achieved our targets as at that time and cautioned that if the trend continued the company was headed for a substantial reduction in its profits. Accordingly, we issued a profit warning as required by regulation.

However, we also added that Management was more bullish on 2nd half of the year and that management was strongly optimistic about the future of the Group’s profitability.

We are pleased to inform the Shareholders that out optimism has been proved right. We expect the underlying financial results for the year 2009 to be strong and surpass our earlier expectations due to a number of reasons, among them, a very strong 2nd half performance across the Group particularly in Kenya operation, strong performance of subsidiaries outside Kenya throughout the year, considerable improvement in cost of Financing of the Group trading activities, improvement and recovery in most of the business segments particularly in 3rd and 4th quarter 2009, gain from disposal of non-performing and non-core assets, reduction in provision for bad debts of commercial customer and in distribution costs.

Furthermore, management wishes to confirm that on 10th of December 2009 a Final Award in the matter between Kenya Pipeline Company Limited and KenolKobil Limited (formerly Kenya Oil Company / Kobil Petroleum Limited) was made.

In previous financial statements, management has on several occasions reported to the shareholders that the inefficient management of the pipeline has been a major constraint to the company’s performance. Following the award in Arbitral proceedings between the company and KPC, management is optimistic that in compliance with the Award, there will be an improvement in the services offered by KPC and this should be a major boost in improved performance and earnings of the company. There is also a financial aspect to this Award which is being challenged. If the Award is upheld, it will contribute significantly to the future earnings of the company.

Yours sincerely

Jacob I. Segman

Acting Chairman and Group Managing Director
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Sure!
The 4.6bn was not factored in 2010 earnings. May be or maybe not it will be factored if the award is maintained...subject for another day.

Let me check my agenda for the Lunch... I have a tight work schedule

Hmmm... the Anon status is beneficial in its own way!

LOL... If I decide to come out into the open I will let you know... and collect!

Awesome profession! Private Sector or UoN?