Gas manufacturer BOC Kenya has reported a 34.1 per cent net profit growth in the half year ended June. FILE PHOTO | NMG Industrial gas manufacturer BOC Kenya #ticker:BOC reported a 34.1 per cent net profit growth in the half year ended June, helped by lower costs and foreign exchange gains.
The Nairobi Securities Exchange-listed firm made a net profit of Sh57.3 million in the review period, up from Sh42.7 million the year before.
The firm recorded a foreign exchange gain of Sh7.9 million, reversing a loss of Sh9.3 million.
BOC did not disclose its costs whose decline helped it report higher earnings and compensated for a 5.5 per cent fall in revenue to Sh487.1 million.
“Revenues, for the six-month period ended June 30, 2018, at Sh487 million was down 5.5 per cent compared to the same period of 2017 due to a one-off contract in the prior year, reduced demand in export markets, inability to supply certain public sector customers on account of long overdue debt as well as continuing pressures from low-cost imported products that constrain the company’s volume-growth initiatives,” BOC said in a statement.
BOC specialises in manufacture and sale of industrial and medical gases and welding products.
The company has attributed its challenges to customer debt, lack of regulation of the industry and increased competition that has forced it to cut prices.