Publicly listed petroleum supplier Engen has cashed in big from the back to back increases in fuel prices during the year 2021.
The company, trading on Botswana Stock Exchange since 1989 has released a cautionary statement in line with Section 5.4c of the Listing Requirements of the Botswana Stock Exchange (BSE) announcing a massive profit jump.
According to BSE regulations issuers must publish a cautionary announcement as soon as they are satisfied that a reasonable degree of certainty exists that the expected profit or loss (before tax) for the period to be reported upon next will differ by at least 10% from the financial results for the previous corresponding period.
Accordingly, Engen Botswana Limited advised its shareholders of that for the financial year ended December 2021 the company ‘s profit before tax will be at P354.8 million, mirroring a whopping increase of 141% or P207.6 million from the P147.2 million reported for the year ended 31 December 2020.
The company says this is mainly attributable to the streaming of new retail facilities and improved business activity that occurred subsequent to the Covid-19 hard lock down that was in force in the early part of 2020 and the significant increase in global crude oil prices during the year.
In addition, good margin and operating expense management contributed to the improved profitability.
“As a result, the gross profit has increased by 96% from P233.1 million to P457.6 million from 2020 to 2021 respectively” the company said.
Shareholders are advised to exercise caution when trading in the Group’s securities until such time as a detailed announcement is made. Summary results for the year ended 31 December 2021 are expected by 31 March 2022.