Par Value: 5/-
Closing Price: 60.00
Total Shares Issued: 19525446.00
Market Capitalization: 1,171,526,760
BOC Kenya reports H1 2020 Earnings
HY Revenue 442.569m versus 495.166m
HY Profit before tax 28.233m versus 33.583m
HY Profit After Tax 14.574m versus 19.024m
HY EPS 0.75 versus 0.97
BOC Kenya PLC FY 2019 results through 31st December 2019 vs. 31st December 2018
FY Revenue 975.863m vs. 966.543m +0.964%
FY Earnings before finance income and taxes 45.964m vs. 49.315m -6.795%
FY Net finance income 43.571m vs. 70.277m -38.001%
FY Profit before tax 89.535m vs. 119.592m -25.133%
FY Profit for the year 55.901m vs. 65.577m -14.755%
Basic EPS 2.86 vs. 3.56 -19.663%
Total dividend 2.35 vs. 5.20 -54.808%
Cash and cash equivalents at the end of the year 37.980m vs. 20.334m +86.781%
Total Assets 1.992639b vs. 2.141747b -6.962%
Total Equity 1.439390b vs. 1.519496b -5.272%
The Companys turnover for the year ended 31 December 2019 rose slightly compared to the previous year. This was driven by overall growth in the medical gas volumes in addition to gaining a large account in the Public Health Sector.
Nevertheless, our Net Income was impacted by Public Sector Debt Management and Supply Chain constraints around a key industrial raw material and availability of special gases and cylinders. Many Public Sector Customers were supplied intermittently or not at all during the year as the company balanced between extended credit terms and significant delays in debt payment in line with our Credit Policy. In addition, sales of industrial cylinder gases to mostly small and medium enterprises remained depressed during the year.
Arising from the above factors the net income for the year decreased 14.8%.
The Board is pleased with the continued growth in the Healthcare Portfolio Liquid Medical Oxygen and Packaged Medical Gases as well as in Customer Engineering services. The Board notes that medical oxygen products have reliably enabled healthcare professionals to provide optimal and quality therapy in both Private and Public Hospitals and Clinics in Kenya.
The Board is fully cognisant of the particular challenges facing the industrial gases sector, not least the illegal filling of the Companys cylinders, on which regulatory assistance has, and will continue, to be sought as we also try to stem the practice in partnership with our trading partners.
The Board expects that 2020 will be impacted by COVID 19. The Company has established a robust and dynamic risk assessment process that is responding with countermeasures for colleagues interfacing with Healthcare, business interruption, exports, imports and the corresponding financial risks including NSE requirements.
The Company is fully committed to supporting the mitigation directives and counsel being offered by the Government. The company has enhanced its capabilities to support the increased need for medical gases, medical gas infrastructure and accessories during this difficult time.
The Board of Directors does not recommend the payment of a final dividend in respect of the year 2019. The total dividend for 2019 will therefore be the KShs. 2.35 per share that was paid as an interim dividend in October 2019. (2018 KShs. 5.20).
The Board of Directors also announces that the Annual General Meeting of the Company will be held 25 June 2020, subject to the easing by the Government of the ongoing social distancing guidelines. The notice of the meeting, the agenda and the annual report will be sent out to shareholders within the required notice period.
BY ORDER OF THE BOARD
BOC Kenya PLC HY 2019 results through 30th June 2019 vs. 30th June 2018
HY Revenue 495.166m vs. 487.130m +1.650%
HY Earnings before finance income and taxes 17.668m vs. 43.044m -58.954%
HY Net finance income 21.568m vs. 33.355m -35.338%
HY Exchange [Losses]/Gains [5.653m] vs. 7.961m -171.009%
HY Profit before tax 33.583m vs. 84.360m -60.191%
HY Profit for the year 19.024m vs. 57.301m -66.800%
Basic EPS 0.97 vs 2.93 -66.894%
Interim dividend 2.35 vs. 2.35
Cash and cash equivalents at the end of period 17.199m vs. 118.262m -85.457%
Total Assets 2.172739b vs. 2.286717b -4.984%
Total Equity 1.540320b vs. 1.645585b -6.397%
Revenue for the six month period ended 30 June 2019 was up 1.6% compared to the same period of 2018.
However, profit after tax for the period declined significantly primarily due to a short term outage of a key raw material and unscheduled plant down time that impacted availability and cost of finished goods.
The results were also impacted by reduced supply to some public sector customers due to long overdue debts and lost sales as a result of the illegal filling of the Companys cylinders.
The Board of Directors anticipates improved results in the second half of the year. Plant availability has been fully restored, with a commensurate positive impact on production costs.
Supply of the key unavailable raw material has been resolved and steps taken to mitigate against recurrence. In addition, the long standing problem of illegally filled cylinders is being managed with the assistance of regulatory authorities.
The Board is also continuing with measures to safeguard shareholder value by ensuring the Company operations reflect a high level of efficiency and productivity.
The Board of directors has declared an interim dividend of KShs 2.35 per share for the six month period ended 30 June 2019 (2018, KShs. 2.35), to be paid out on or about 15 October 2019 to shareholders on the register at close of business on 27 September 2019.
Running down the cash position.
FY Revenue 966.543m vs. 967.626m -0.112%
FY Earnings before finance income and taxes 49.315m vs. 29.677m +66.172%
FY Net finance income 70.277m vs. 53.936m +30.297%
FY Profit before tax 119.592m vs. 83.613m +43.030%
FY Profit for the year 69.572m vs. 39.379m +76.673%
Basic EPS 3.35 vs. 2.02 +65.842%
Total dividend 5.20 vs. 5.20
Cash and cash equivalents at the end of the year 22.048m vs. 73.389m -69.957%
Total Assets 2.145738b vs. 2.228669b -3.721%
Total Equity 1.523488b vs. 1.611082b -5.437%
Revenue, for the year ended 31 December 2018, at Kshs.967 million was at par with prior year. The Board is pleased to note that demand from the medical gases sector where quality and safety standards are better adhered to increased during the year, driven by customer confidence, reliance on our quality products and engineering solutions, and expansion of the Sector.
However, the revenue gains from the medical sector have been eroded by a challenging operating environment in the industrial sector, not least from the illegal filling of the Companys gas cylinders.
Profit after tax increased by 66% despite tax related loss provisions made in the books of a subsidiary Company. The increased profitability was a result of cost management, sustainable efficiencies and savings initiatives that the Company has instituted over a long period and the maintaining of revenues despite the challenges in the Industrial Sector.
The health services sector in Kenya has been expanding over the last several years and the Company continues to partner with the various public and privately owned health care facilities to ensure the availability to patients of high quality medical gases. We especially look forward to continuing collaboration with the County Governments in their ongoing efforts to ensure access to medical oxygen at the County level hospitals.
The industrial gases and welding products markets continues to face significant pressures from low cost imported products and more pronounced illegal refilling of the Companys gas cylinders. Management has taken certain steps and the Company is hopeful that, working with the appropriately mandated enforcement agencies, the illegal filling of cylinders will begin to abate in the coming months.
While ensuring that local standards as well as the Lindes Groups global production and safety standards are adhered to, the Board and Management will continue to focus on efficiency in production so as to deliver products and services to customers competitively and timeously.
The Board of Directors is pleased to recommend the payment of a final dividend of Kshs 2.85 per share 2017 KShs 3.00 bringing the total dividend for the year 2018 to KShs 5.20 2017 Shs 5.20 to be paid net of withholding tax on or about 26 July 2019 to shareholders on the register at close of business on 29 April 2019.
The Board of Directors also announce that the Annual General Meeting of the Company will be held on 21 June 2019. The notice of the meeting, the agenda and the annual report will be sent out to shareholders within the required notice period.
BY ORDER OF THE BOARD
Ruth Ngobi Company Secretary BOC Kenya Plc
28 March 2019
BOC Kenya Ltd. H1 2018 results through 30th June 2018 vs. 30th June 2017
H1 Revenue 487.130m vs. 515.631m -5.527%
H1 Earnings before finance income and taxes 43.044m vs. 42.551m +1.159%
H1 Net finance income 33.355m vs. 27.780m +20.068%
H1 Exchange gains/ [Losses] 7.961m vs. [9.304m] +185.565%
H1 Profit before tax 84.360m vs. 61.027m +38.234%
H1 Profit for the year 57.301m vs. 42.710m +34.163%
Basic EPS 2.93 vs. 2.19 +33.790%
Interim dividend 2.35 vs. 2.20 +6.818%
Cash and cash equivalents at the end of the period 118.262b vs. 102.173m +15.747%
Total Assets 2.286717b vs. 2.307739b -0.911%
Total Equity 1.645585b vs. 1.728469b -4.795%
BOC Kenya Limited FY 2017 results through 31st December 2017 vs. 31st December 2016
FY Revenue 967.626m vs. 1.076719b -10.132%
FY Earnings before finance income and taxes 29.677m vs. 132.368m -77.580%
FY Net finance income 53.936m vs. 58.314m -7.508%
FY Profit before tax 83.613m vs. 190.682m -56.151%
FY Profit for the year 39.379m vs. 126.323m -68.827%
Basic EPS 2.02 vs. 6.47 -68.779%
Final Dividend 3 a share
Total dividend 5.20 vs. 5.20
Cash and cash equivalents at the end of the year 73.389m vs. 71.417m +2.761%
Total Assets 2.228669b vs. 2.223838b +0.217%
Total Equity 1.611082b vs. 1.689449b -4.639%
Revenue for the year at 967.6m was down 10% compared to the previous year due to the loss of a major public sector hospital tender occasioned by the importation of medical oxygen., depressed demand in a constrained credit environment and reduced economic activity in welding and fabrication during the extended period of the national elections.
Profit after tax decreased by 56% due to a once off credit in the prior year following the adoption by the Company of the revised methodology used by Group companies to determine stock obsolescence provisions, increased debtor provisioning due to delayed payments by public sector customers and customers in the sugar industry and the provisioning of disputed tax assessments in one of the subsidiary companies.
Local industrial gases, medical gases and welding products markets face significant pressures from lowcost imported products, wich together with illegal refilling of gas cylinders continue to constrain the company's volume growth initiatives.
counterintuitively, this lower run rate looks like the new normal.
H1 Revenue 515.631m vs. 539.876m -4.491%
H1 Earnings before finance income and taxes 42.551m vs. 75.775m -43.846%
H1 Net finance income 27.780m vs. 24.810m +11.971%
H1 Exchange gains [Losses] [9.304m] vs. [4.368m] -113.004%
H1 Profit before tax 61.027m vs. 96.217m -36.574%
H1 Profit for the year 42.710m vs. 68.116m -37.298%
Basic EPS 2.19 vs. 3.49 -37.249%
Interim dividend 2.20 vs. 2.20
Cash and cash equivalents at the end of the period 102.173m vs. 132.801m -23.063%
Total equity 1.735894b vs. 1.745465b -0.548%
Soft H1 Have paid out 100.45% of H1 EPS as H1 Dividend
FY Revenue 1.076719b vs. 1.186420b -9.246%
FY Earnings before finance income and taxes 132.368m vs. 160.175m -17.360%
FY Net finance income 58.314m vs. 61.546m -5.251%
FY Profit before tax 190.682m vs. 221.721m -13.999%
FY Profit for the year 126.323m vs. 148.600m -14.991%
Basic EPS 6.47 vs. 7.61 -14.980%
Final dividend 3.00 vs. 3.00
Total dividend 5.20 vs. 5.20
Total equity 1.689449b vs. 1.714106b -1.438%
Cash and cash equivalents at the end of the year 71.417m vs. 400.568m -82.171%
Number of outstanding shares 19,525,446
2016 was a challenging year for the Group.
the landscape in the gases and welding products market is expected to continue being very competitive and the playing field not necessarily even
Soft results. Difficult to see where the rebound is going to come from right now
H1 Revenue 539.876m vs. 556.529m -2.992%
H1 Earnings before income and taxes 75.775m vs. 77.763m -2.556%
H1 Net finance income 24.812m vs. 26.008m -4.599%
H1 Exchange gains [losses] [4.368m] vs. [10.521m] -58.483%
H1 Profit before tax 96.217m vs. 93.250m +3.182%
H1 Profit for the year 68.116m vs. 65.144m +4.562%
EPS 3.49 vs. 3.34 +4.491%
Dividend for the period 2.20 vs. 2.20
Cash and cash equivalents at the end of the period 132.801m vs. 290.130m -54.227%
Total assets 2.298703b vs. 2.231898b +2.993%
Total equity 1.745465b vs. 1.693870b +3.046%
Revenue was down 3% from prior year due to revenue reductions occasioned by increasing supplies of cheap imported welding products counterfeiting of the Companys gases.
interim Dividend 2.20 a share
Interim Dividend worth 2.716%
FY Revenue 1.186420b vs. 1.296679b -8.503%
FY Earnings before finance income and taxes 160.175m vs. 200.850m -20.251%
FY Net finance income 61.546m vs. 77.134m -20.209%
FY Profit before tax 221.721m vs. 277.984m -20.240%
FY Profit for the year 148.600m vs. 229.625m -35.286%
EPS 7.61 vs. 11.76 -35.289%
Total dividend 5.20 vs. 5.20
Cash cash equivalents at the end of the year 400.568m vs. 478.158m -16.227%
Total equity 1.714106b vs. 1.747188b -1.893%
Final Dividend 3.00 a share [Total Dividend for the Year 5.20]
Revenue for the FY was 1.186b -8.5% versus previous year due to increased market competitiveness.
Profit before Tax was down 20.2% due to the lower Revenue and exchange losses arising from the depreciation of the local currencies
fuel cost component of electricity costs has been on a downward Trend
A new oxygen filling facility was commissioned in Tanzania during the year
Headline Revenue -8.503% and FX losses [a common refrain].
First Half Earnings through 30th June 2015 versus through 30th June 2014
First Half Earnings before Finance Income and Taxes 556.529m versus 674.982m
First Half Net Finance Income 26.008m versus 33.420m
Exchange Gains[Losses] [10.521m] versus 4.532m
First Half Profit before Tax 93.250m versus 127.391m
First Half Profit after Tax 65.144m versus 85.621m -23.91%
H1 EPS 3.34 versus 4.39 -23.91%
Interim Dividend 2.20 unchanged
Revenue down 18% from prior year due to cheap imports of Oxygen and nitrogen
Profit after Tax is down 24% due to rationalisation of product pricing to retain market share, exchange losses increased provisioning for bad and doubtful debts
First Half through 30th June 2014 versus through 30th June 2013
First Half Revenue 674.982m versus 629.176m +7.3%
First Half Profit Before Tax 127.391m versus 151.872m -16.1194%
First Half Profit After Tax 85.621m versus 101.255m -15.44%
First Half Earnings Per Share 4.39 versus 5.19 -15.414%
First Half Dividend 2.20 versus 2.60 -15.384%
Cash at the End of the Period 719.882m
However, profits before Tax were down 16% due to increased electricity costs and a revision of the calculation methodology for stock obsolescence allowances.
FY 2013 versus FY 2012
FY 2013 Revenue 1.242602b versus 1.294550b -4.00%
FY EBITDA 231.125m versus 230.068m
FY Net Finance Income 77.267m versus 56.624m
FY Profit before Tax 308.392m versus 286.692m +8.00%
FY Profit after Tax 202.636m versus 197.374m
FY EPS 5.20 versus 5.05 +2.97%
FY Dividend of 2.60 a share making that a Total Dividend of 5.20
FY Dividend worth 1.733% of Yield at a Price of 150.00
Looks richly priced on a PE Basis but that might be a mistake.
FY 2012 versus FY 2011
FY Revenue 1.294550b versus 1.205372b +7.39%
Net Finance Income 56.624m versus 25.494m
FY PBT 286.692m versus 214.948m +33.37%
FY PAT 197.374m versus 150.604m +31.054%
FY EPS 10.11 versus 7.71 +31.128%
Interim Dividend 2.00
Final Dividend 3.05 versus 4.80
Total Dividend Pay Out 5.05 versus 6.80
Citing Strong Sales in Kenya.
Full Year Dividend Pay Out Ratio reduced to 49.95%.
Single Digit PE now.
Not an Unattractive Valuation.
Swot Analysis H1 2012 versus H1 2011
Turnover 647.258m versus 551.761m +17.3%
Profit Before Tax 118.368m versus 75.301m +57.2%
Profit After Tax 82 858m versus 52.711m
Interim Dividend 2.00 shillings a Share
Earnings Per Share 4.24 versus 2.70
Commentary confident about maintaining the Rebound
Swot Analysis 12 months to Dec 2011 versus Dec 2010
Turnover 1.205372b versus 1.155379b +4.3%
Profit Before Tax 214.948m versus 114.685m +87.4%
PAT 150.604m versus 79.337m
EPS 7.71 versus 4.06
Interim Dividend Paid 2.0
Final Proposed Dividend 4.80
That has staunched a Sequence of 3 Declining Years of Profit.
Swot Analysis 12 Months to Dec 2010 versus Dec 2009
Sales 1.155379b versus 1.285373b
Impairment [136.625m] versus [34.5m]
Operating Profit 83.488m versus 198.803m
EPS 4.06 versus 7.88
3 Year slowdown.
EPS 10.26 in 2008 7.88 in 2009 4.06 in 2010