BOC Gases earnings drop to Sh231 million

BOC Gases’ posted a 21 per cent decline in pretax profit from Sh295.1 million to Sh231.6 million for the year ended December 2009.

The gas maker attributed the fall to expensive raw materials and high cost of power. The company’s sales remained almost flat due to poor local demand for its products as a result of little activity in agriculture and manufacturing sectors last year.

Steady growth

BOC produces industrial gases, medical gases, scientific gases, refrigerants, welding equipment and consumables and safety equipment.

“However, we started seeing steady improvement from November 2009 and I hope that activity will continue this year,” BOC Kenya managing director John Kariuki told reporters in Nairobi on Friday.

Although he said that the company expects the economy to perform well in 2010 and grow at four per cent, political bickering has to be addressed urgently.

Remain focused

“The current wrangles are not to be encouraged and we should remain focused on the reform agenda,” said Mr Kariuki.

He said that the company expects the Sh22 billion-economic stimulus package announced by the government last year to create massive demand for its products as construction projects kick off.

The board recommended a final dividend of Sh4.80 a share to bring the total payout for the year to Sh6.80 a share.