KenolKobil

KenolKobil Limited
Public
Traded as KN: KENO
Industry Oil and gas
Founded 13 May 1959 (1959-05-13)
Founder R S Alexander
Headquarters Nairobi, Kenya
Area served
 Africa
Key people
 James Mathenge
Chairman of the Board
David Ohanda
Group Managing Director
Services Fuel stations
Revenue Decrease KES: 91.32 billion (2014)
Profit Increase KES: 1.09 billion (2014)
Total assets Decrease KES: 15.49 billion (2014)
Total equity Increase KES: 7.33 billion (2014)
Website Homepage

KenolKobil Limited is a pan African downstream oil company. The group's operations span seven countries across Eastern, Central and Southern Africa and encompass the supply, storage, distribution and retail of a wide range of petroleum products.[1]

Overview

KenolKobil's headquarters are in Nairobi, Kenya with subsidiaries in Burundi, Ethiopia, Kenya, Mozambique, Rwanda, Uganda and Zambia.[2]

According to the Petroleum Institute of East Africa's report released in December 2014, KenolKobil ranked third with 13.9 percent market share behind Total Kenya and Vivo Energy.[3]

History

KenolKobil, then Kenya Oil Company Limited (abbreviated Kenol), was founded on May 13, 1959 by R S Alexander as a Private limited company. The Company started its operations as a wholesaler of packaged Kerosene under the brand name "SAFI". The company later began investing in service stations. In September 1959, Kenya Oil Company listed its shares on the Nairobi Securities Exchange making it the first petroleum company to be quoted on the exchange.[4]

In the early 1980's, Kenol faced numerous financial challenges and was placed under receivership. The company came out of receivership in 1983 and its shareholders resumed full control of the business.[5] In 1986, Kenol and Kobil Petroleum Limited, a Delaware registered holding company that acquired Mobil Oil's assets in Kenya and Uganda in 1984,[6] entered into a joint operations and management agreement. This agreement resulted in the sharing of distribution cost and managerial services thus enabling both companies to lower their operating costs and enhance profitability.[4]

The year 1999 marked the beginning of regional expansion. That year, the group acquired a 100% stake of Galana Oil Uganda Limited and renamed it Kobil Uganda Limited. At the point of acquisition, Kobil Uganda owned 19 service stations. In 2001, Kenol expanded into Tanzania through the incorporation of Kobil Tanzania Limited as a wholly owed subsidiary. The group expanded further south in 2002 when it acquired 100% interest in Jovenna Zambia Limited and renamed it Kobil Zambia Limited.[7]

The group expanded to Ethiopia in March 2005 when it incorporated Kobil Ethiopia. In February 2006, Kenol acquired Shell Rwanda SARL from Royal Dutch Shell and renamed it Kobil Rwanda. In 2007, the group acquired KLSS Rwanda's assets and merged them to Kobil Rwanda. In the same year, the group acquired the assets Shell Ethiopia and merged them to Kobil Ethiopia.[7]

Kenol and Kobil joint operations and management agreement came to an end in 2007 when Kenol acquired 100% of the shares in Kobil Petroleum.[8] This transaction involved allotting 45.5 million shares in exchange for 100% of the issued shares of Kobil.[4] To reflect its status as a merged company, the group's name was changed from Kenya Oil Company Limited to KenolKobil.[6]

In 2009, the group acquired Oil Burundi from Engen and rebranded it to Kobil Burundi SA. In 2011, the group resumed its expansion in the Southern African region through the incorporation of Kobil Zimbabwe in Zimbabwe and Kobil Mozambique in Mozambique. In the same year, the Group completed acquisition of a depot in Lubumbashi, in the Democratic Republic of Congo.[4] The main purpose of Kobil Zimbabwe was to form a joint venture with Engen to acquire the whole operations of Shell and BP in Zimbabwe. The partners where not able to receive government approval due to the Indigenization Law in Zambabwe.[6] Kobil Zimbabwe has since been a dormant company. 2011 also saw the group acquire 25.5% stake in Lublend Limited through Kobil Zambia.

In May 2012, KenolKobil received a USD 800 Million takeover bid from Puma Energy, a subsidiary of Swiss Based Trafigura.[9][10] However Puma Energy later terminated its bid to acquire the group.[11]

KenolKobil is currently the largest locally owned oil marketer in East and Central Africa.

Member companies

The companies that comprise the KenolKobil Limited include, but are not limited, to the following:[12]

Ownership

The shares of the stock of KenolKobil Limited are traded on the Nairobi Securities Exchange, under the symbol: KENO. At February 2015, the shareholding in the group's stock was as depicted in the table below:[12]

KenolKobil Stock Ownership
Rank Name of Shareholder Percentage Ownership
1 Wells Petroleum Holdings Limited 24.91
2 Petro Holdings Limited 17.28
3 Energy Resources Capital Limited 05.99
4 Other investors 51.82
Total 100.00

Governance

KenolKobil is governed by six person board of directors with James Mathenge serving as the Chairman and David Ohana as the Group Managing Director.[12]

See also

References

  1. ↑ KenKo. "KenolKobil - Who we are". KenolKobil (KenKo). Retrieved 2015-08-16.
  2. ↑ Juma, Victor (25 February 2016). "KenolKobil exits Congo, Tanzania with sale of units". The EastAfrican. Nairobi. Retrieved 25 February 2016.
  3. ↑ Juma, Victor (12 December 2014). "Shell opens up market share lead over rivals". Business Daily Africa. Nairobi. Retrieved 16 August 2015.
  4. 1 2 3 4 Kenko (6 June 2012). "KenolKobil - KShs 1,700,000,000 Commercial Paper Programme Information Memorandum" (PDF). KenolKobil (KenKo). Retrieved 16 August 2015.
  5. ↑ "KenolKobil 2008 Annual Report" (PDF). KenolKobil. 2008-12-31. Retrieved 2015-08-16.
  6. 1 2 3 "Investor Conference - KenolKobil" (PDF). KenolKobil. 4 October 2011. Retrieved 16 August 2015.
  7. 1 2 "KenolKobil - KShs 1,500,000,000 Commercial Paper Programme Information Memorandum" (PDF). KenolKobil. 2008-05-01. Retrieved 2015-08-16.
  8. ↑ Were, Emmanuel (2008-02-20). "Kenya: Petroholdings Sells Its Shares in Kenol to Foreign Investor". Business Daily Africa. Nation Media Group. Retrieved 2015-08-16.
  9. ↑ "$800m KenolKobil price tag ‘too high for Puma’". The EastAfrican. Nation Media Group. March 9, 2013. Retrieved 2015-08-17.
  10. ↑ "KenolKobil - Cautionary Statement". KenolKobil. 7 May 2012. Retrieved 2015-08-17.
  11. ↑ Juma, Victor (2013-03-01). "Puma drops bid to acquire KenolKobil". Business Daily Africa. Nation Media Group. Retrieved 2015-08-17.
  12. 1 2 3 "KenolKobil Limited - 2014 Annual Report" (PDF). KenolKobil. 2014-12-31. Retrieved 2015-08-17.
  13. ↑ Bloomberg. "Company Overview of Lublend Limited". Bloomberg Businessweek. Retrieved 17 August 2015.

External links

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