Kenya Pipeline Company (KPC), one of the State corporations earmarked for possible listing on the Nairobi Securities Exchange (NSE), has reported a net profit of Sh3.77 billion for the fiscal year 2022.

In what marks a staggering 127 per cent increase from the previous year’s figures, this move signals a robust performance despite challenges faced by the global economy.

The surge in earnings can be attributed to a substantial reduction in taxation, which plummeted to Sh2 billion. In 2021, the company bore the brunt of a Sh5 billion tax bill, primarily due to deferred taxes.

However, it is interesting to note that the stellar profit figures come against the backdrop of a slight dip in revenue. In 2021, KPC raked in Sh27 billion, a figure that slid marginally to Sh26 billion in 2022.

Lucrative asset

Despite this dip, the company remains a standout performer among state-owned enterprises, many of which are facing financial challenges even as some analysts claim this development could be linked to attracting these forms to investors.

The government, which is seeking ways to alleviate the debt service burden and provide budgetary support, has earmarked profitable state-owned enterprises for sale.

KPC’s robust financial performance positions it as a lucrative asset for potential investors, making it a strong candidate for listing on the NSE.

“The company sustained the implementation of strategic decisions in line with its Vision 2025 objectives. On business diversification, the company remained focused on implementing initiatives aimed at increasing KPC’s market share in fibreoptic cable (FOC) business line, leading to the onboarding of additional customers during the year,” said Faith Boinett, KPC chairman.

KPC’s financial health is further highlighted by its strong solvency position. With current assets nearly three times higher than current liabilities, which stand at Sh8 billion, the company appears well-positioned to weather economic uncertainties and maintain its profitability.