BOC registers an increase of 6.5 per cent. excess

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BOC registers an increase of 6.5 per cent. excess


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Medical and industrial gas producers BOC Kenya increased its net profit by 6.5 percent to Sh108.3 million in the year ending December. PHOTO PHOTO | NMG

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Summary

  • Medical and industrial gas producers BOC Kenya increased its net profit by 6.5 per cent to Sh108.3 million in the year ended December, aided by higher sales.
  • The new final dividend will be paid out on July 19 to shareholders who will be on the register on May 27th.
  • The company’s revenue rose 25.7 percent to Sh1.3 billion, driven by rising demand for medical oxygen due to an increase in the number of coronavirus patients in need of assisted breathing.

Medical and industrial gas producers BOC Kenya #ticker: BOC increased its net profit by 6.5 percent to Sh108.3 million in the year ended December, aided by higher sales.

Nairobi Securities Exchange #ticker: NSE-listed company declared a final dividend of Sh2.9 per share, raising the total payout to Sh4.4 per share. It had paid a dividend of Sh4.15 for the previous year.

The new final dividend will be paid out on July 19 to shareholders who will be on the register on May 27th.

The company’s revenue rose 25.7 percent to Sh1.3 billion, driven by rising demand for medical oxygen due to an increase in the number of coronavirus patients in need of assisted breathing.

However, costs grew at a faster pace, resulting in smaller margins and the single-digit growth in net earnings.

“Profitability was affected by the imported medical oxygen as the company absorbed some of the product costs and supply chain costs to limit price increases on the customers,” said BOC Kenya.

The company says demand for medical oxygen has since fallen at pre-pandemic levels due to reduced Covid-19 infection rates and hospitalizations.

“This has relieved the company of the need to import more expensive products,” the company said.

However, with the gradual increase in access to medical oxygen and improvements in the oxygen infrastructure in the country, organic growth in oxygen volumes will continue to be realized in the coming years, ”said BOC Kenya.

This is the second time the company has published full-year results after receiving a joint takeover bid from carbon dioxide producer Carbacid and investment company Aksaya.

The proposed acquisition has remained in limbo after being opposed in the High Court and by the Capital Markets Tribunal by minority shareholders in BOC Kenya with reference to the undervaluation of the target company by the bidders.

Carbacid and Aksaya announced in November 2020 that they will buy 100 percent of BOC Kenya at a price of Sh63.5 per share or a total of Sh1.2 billion. The target company’s share subsequently rose above the offer price and was last traded at Sh73.25 apiece.

The bidders have said they are still interested in completing the transaction despite delays in resolving the legal challenges.

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