Gas Company Pretax Profit Up By Sh1.3 Million

BOC Kenya has reported a Sh1.3 million increase in pre-tax profit for the first six month ending June 31, 2008.

The company that manufactures and distributes industrial and medical gases, recorded a pretax profit of Sh183.8 million for the first six month up from Sh182.5 million over the same period in 2007.

Turnover rose by Sh3 million to Sh618.6 million up from Sh615 million.

"Our turnover and profits have remained steady for the last six month, but we believe the second half of the year will be better helping us meet our target for the year," BOC Kenya managing director John Kariuki noted.

Post poll violence made it impossible for the company to supply its products to western Kenya, northern Tanzania and Uganda.

Cooking gas

"The escalating input costs, especially on steel, power, distribution and cooking gas (LPG), have also put pressure on the bottom line," Mr Kariuki added.

This was in tandem with high inflation that has been witnessed in the country over the past six month scaling to high of 31.5 per cent in May 2008.

The measure of increase in cost of commodities and service is, however, receding with July registering a 26.5 per cent. "Our focus now is to address our challenges around infrastructure so that it can support our growth," added Mr Kariuki. Over the period, the company spent Sh86 million on new cylinders and fleet as way of improving its infrastructure.

On BOC Kenya merger with Carbacid Investment limited, the management noted that nothing of significance has transpired since the filing of an appeal by last year.