TotalEnergies Marketing Kenya Plc, a key entity in Kenya's energy landscape and a subsidiary of the multinational TotalEnergies SE operates primarily in the marketing and distribution of petroleum products. The company’s activities are diverse, spanning several channels, including a widespread network of service stations that sell fuels, lubricants, car care products, convenience stores, and vehicle maintenance services. Additionally, they supply petroleum products to industrial consumers through their general trade channel and provide aviation fuels at major Kenyan airports. The company also focuses on exports to neighbouring countries and is a significant player in the liquefied petroleum gas (LPG) market, with dedicated filling plants and distribution networks.
Despite the strong competition in Kenya’s oil marketing sector, TotalEnergies has managed to secure a market share of 14.37% as of December 2024, making it the third-largest oil marketing company in the country. Its main competitors include Vivo Energy Kenya and Rubis Energy Kenya. TotalEnergies distinguishes itself through its extensive distribution network and strong brand reputation.
However, the company faced significant financial challenges in 2024, with a 51% decline in net profit to KSh 1.49 billion, alongside a 3.2% drop in total revenue to KSh 151.5 billion. This was attributed to reduced sales, aggressive competition, and rising costs. Operating expenses were kept in check due to effective cost control measures, but finance costs surged by over 65% due to high borrowing costs. A positive note in the financial reports was a foreign exchange gain of KSh 2.07 billion, which helped offset some losses from the previous year. Despite these challenges, the company maintained its dividend payout at KSh 1.92 per share.
Overall, TotalEnergies Marketing Kenya Plc's financial performance in 2024 reflects a tough operating environment marked by intense competition and high finance costs, even as the company seeks to align with cleaner energy solutions in the future.
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