Kenya Pipeline Company Reports Profit Growth in 2022 Despite Dip in Revenue
The Kenya Pipeline Company (KPC) has reported a 127% increase in net profit for the fiscal year 2022, totalling Ksh 3.77 billion. This financial achievement comes amid the global economic challenges faced by many corporations.
A major contributing factor to this profit growth was a reduction in taxation, which dropped to Ksh 2 billion for the year. In stark contrast, KPC had to shoulder a Ksh 5 billion tax bill in 2021, mainly due to deferred taxes.
These profit figures are set against a backdrop of a slight decrease in revenue. In 2021, KPC generated Ksh 27 billion in revenue, while in 2022, the figure marginally decreased to Ksh 26 billion. Despite this, KPC stood out among state-owned enterprises, many of which face financial challenges, and some experts suggest it may be an attractive proposition for potential investors.
Prior to the development, the Kenyan government had identified profitable state-owned enterprises as candidates for sale, with the aim of easing the debt service burden and providing budgetary support. KPC's financial performance and position make it an appealing asset for potential investors. Its current assets nearly triple its current liabilities, which stand at Ksh 8 billion, indicating a healthy financial position.
Faith Boinett, KPC's chairman, emphasized the company's commitment to strategic decisions aligned with its Vision 2025 objectives. KPC continued to focus on diversifying its business, particularly in the fibre-optic cable (FOC) business line, leading to the onboarding of additional customers throughout the year.
