Kenya Pipeline Company (KPC) has reported a 13% increase in full year profit after tax which has grown to Ksh 11.6 billion compared to Ksh 10.2 billion reported last year.
The firm Nairobi Securities Exchange-listed firm attributes the profit rise to better revenue performance recorded during the period under review.
KPC Plc Acting Managing Director Pius Mwendwa said the firm also realized improved operational efficiency, product availability and stronger cash generation from the firm’s core business leading to higher profitability.
“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 government completed its divesture in the firm in April this year, where it sold 65% of its stake held in the firm to raise Ksh 107 billion through the Initial Public Offering.
The petroleum products transport and storage solutions provider said total revenue rose by 9% to Ksh 39.5 billion in a year to June 2026 backed by 7% in local and transit volumes
Mwendwa said KPC also netted Ksh 17.4 billion in cash from from operating activities which grew 34%. These include transportation of petroleum products via its pipelines which cover 1,342 kilometres, storage, pumping, and loading facilities operations.
The firm also booked 84.4% rise in cash and cash equivalents to Ksh 20.5 billion by close of the financial reporting period.
In a bid to diversify its revenue streams and strengthen its operations, KPC is targeting to establishment of an integrated petroleum trading hub at the Kenya Petroleum Refineries Ltd (KPRL) facilities in Kipevu, Mombasa.
“KPC Plc, through the resources at its disposal, is working to unlock untapped potential that enables diversification beyond pipeline operations into storage, re-export, Liquid Petroleum Gas (LPG), Liquid Natural Gas (LNG), biofuels, power generation and support of third-party petroleum market trading operations,” said Faith Bett-Boinett KPC Plc Chairperson.
KPC is also seeking to undertakes strategic expansion programmes, including expanding current pipeline from Eldoret to Kampala and then to Kigali.
Following the IPO, total assets rose by 6% to Ksh 149 billion. Shareholders’ equity grew 11% to Ksh 119 billion, while borrowings fell 83% to Ksh 442.86 million on reduced debt holding.
Due to better performance, KPC Plc Board has approved the payment of a first and final dividend of Ksh 0.32 per share totalling Ksh 5.9 billion.
