- Kenya Pipeline Company Plc recorded a 13% rise in profit after tax to KSh 11.58 billion in its first full-year results since privatisation
- Group revenues climbed 9% to KSh 43 billion, supported by a 7% growth in both local and transit volumes
- The board recommended a KSh 5.9 billion dividend payout and outlined plans to expand revenue to KSh 68 billion by 2030
TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Kenya Pipeline Company Plc (KPC) has reported a profit after tax of KSh 11.58 billion for the financial year ending 2026, a 13% increase from KSh 10.24 billion recorded in the prior year, according to results released on October 14.
Source: Twitter
The company, which was listed on the Nairobi Securities Exchange following its privatisation earlier this year, saw group revenues climb 9% to KSh 43 billion from KSh 39.5 billion, driven by a 7% rise in local and transit petroleum volumes. Profit before tax came in at KSh 17.54 billion.
Why KPC profit rose
Acting managing director Pius Mwendwa attributed the performance to improved operational efficiency and stronger cash generation from the company's core pipeline and storage business.
Cash from operating activities rose 34% to KSh 17.39 billion, while cash and cash equivalents at year-end surged 84.4% to KSh 20.54 billion.
"Despite a difficult operating environment characterised by global petroleum prices and supply volatility due to the Middle East crisis, KPC Plc has managed to grow its top line and bottom line while improving operating cost efficiencies," Mwendwa said.
The company's total assets grew 6% to KSh 149 billion. Shareholders' equity expanded 11% to KSh 119 billion, while borrowings fell 83% to KSh 442.86 million following significant debt reduction during the year.
The board approved a first and final dividend of KSh 5.9 billion, equivalent to KSh 0.32 per ordinary share, with the share register closing on November 30.
What are Kenya Pipeline's plans?
Board chairperson Faith Bett-Boinett outlined plans to diversify the company beyond its pipeline operations through the development of an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd facilities in Kipevu, Mombasa.
The hub is intended to offer transhipment, bunkering, bulk breaking, and re-export services to regional markets.
"KPC Plc assets are well positioned to enhance national energy security, support growing regional demand, and create potential additional future revenue streams," Boinett said.
She noted that the Kipevu development aligns with emerging regional projects, including the Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone, as well as upstream Gulf Energy South Lokichar operations.
Which jobs did KPC announce?
In other news, we also highlighted facts about Kenya Pipeline Company’s 50 internship vacancies for diploma and degree graduates.
The one-year programme spans 20 disciplines.
The vacancies ranged from legal and finance to electrical and aeronautical engineering.
Source: TUKO.co.ke