Finance

No interim dividend for H1-2022, TotalEnergies Kenya decides

No interim dividend for H1-2022, TotalEnergies Kenya decides
Wednesday, 31 August 2022 16:46

The decision will mostly affect domestic investors since the majority shareholder can cushion its growing operating expenses with its consolidated results. 

The board of TotalEnergies Kenya will not distribute interim dividends though the company ended the first half of 2022 with cash and cash equivalents estimated at Ksh10.5 billion (about US$88.16 million).  

With a reported net profit of Ksh795.5 million, distributing dividends wouldn’t have hurt the company’s cash position. However, that net profit is down by 113% year-on-year, we learn. 

According to company executives, the rise in revenues (Ksh46.2 billion or about US$385.2 million) was mitigated by an increase in marketing expenses and fees because of the government's delay in validating a fuel price revalorization while prices were rising sharply on international markets.  Also, the depreciation of the Kenyan currency against the US dollar sent TotalEnergies Kenya’s import bill flying. 

The decision not to distribute interim dividends will only affect Kenyan shareholders. Indeed, the expenses that caused a drop in the company’s net profit are offset by the activities of the parent company, which is the majority shareholder. Its main supplier is another subsidiary of its parent company so, the rising operating expenses incurred by TotalEnergies Kenya will be offset in TotalEnergies SE’s consolidated results. 

The TotalEnergies Kenya experience provides an insight into what can happen to oil marketing companies fully owned by African investors. As they usually have no international subsidiaries to cushion the growing operating expenses in consolidated results, the rising price of petroleum products may negatively impact them, and perhaps threaten their ability to continue operations. 

On the same topic
• The IMF has approved an immediate disbursement of $367 million to Ghana, bringing the total financial support provided to the country since May...
Zenith Bank is in advanced talks to acquire a tier-two bank in Kenya. The Central Bank of Kenya has raised capital requirements, triggering market...
• DPI acquires minority stake in Egypt’s largest private hospital group• Funds to support expansion across Egypt and key Gulf countries• Investment among...
WAEMU states collectively raised nearly 7,000 billion CFA francs in the first half of 2025, a record amount driven by increased financing needs, the...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.