KenolKobil of Kenya Posts Biggest Fall in 3 Years: Nairobi Mover

KenolKobil Ltd. (KNOC), a Kenyan fuel retailer with operations in nine African countries, fell the most in more than three years after posting a first-half loss.

The stock dropped as much as 14 percent and was down 13 percent at 13.15 shilling by the 3 p.m. close in Nairobi, the capital. That’s the biggest drop since April 7, 2009, and the lowest close since June 21.

The company on Sept. 7 reported a loss of 3.9 billion shillings ($46 million) for the six months through June, compared with a profit of 2.3 billion shillings a year earlier. It blamed a “depressed” global economic environment, lower oil prices, high domestic inflation and borrowing costs. The most significant impact on results was a 4.2 billion-shilling loss on its foreign-exchange hedges, KenolKobil said.

“The results released were below market expectations with massive losses, whereas the market expected some profits,” John Kamunya, a research analyst at Nairobi-based Sterling Capital Ltd., said on phone today.

The stock may decline further, Doreen Marete, a trader at Sterling Capital, said in a separate interview.

“We are seeing huge demand levels at 10 shillings with sellers seeking to offload at 14 shillings a share,” she said.

KenolKobil announced on May 8 its main shareholders agreed to sell their stake to Puma Energy BV, a unit of Trafigura Beheer BV. Puma will offer to buy 100 percent of KenolKobil after due diligence is completed, the Kenyan company said on May 15.

To contact the reporter on this story: Johnstone Ole Turana in Nairobi at jturana@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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