KenolKobil Ltd., 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.