TOL finances show positive turn-around

TOL finances show positive turn-around

Tue Aug 04, 2015

TOL Gasses profit has been increasing in dribs and drabs to reach 1.41bn/- realised in the first half of this year, closing the chapter of losses.

The firm that produces industrial and medical gasses, was clouded with losses since it listed on the Dar es Salaam Stock Exchange (DSE) in 1998.

However, a new management has turned around the loss-making trend in the last three years to position the firm in the profit making zone again.

TOL shares has increased by slightly over 20 per cent since January to close last week at 675/- a stock well above the primary offer price of 500/-.

The Zan Securities Chief Executive Officer, Mr Raphael Masumbuko, said the gas firm “is on the positive mood” after making a profit gain of 27 per cent.

“TOL is on the positive mood,” Mr Masumbuko said, noting that the profit is 27 per cent above the corresponding period last year.

Previously, in one of its weekly commentary, Zan CEO said that: “It is time to begin staging in purchasing the best-quality stocks that have been beaten down.”

The ‘Daily News’ last month analysed TOL stock and predicted to be the equity to watch for the rest of the second half of this year.

The financial statement shows that TOL profit was the result of revenue that jumped by 2.5 per cent to 6.92bn/- but costs of sales chopped-off the income to remain with a gross profit of 2.98bn/-.

The firm also cut by almost half its long term borrowings from 7.48bn/- to 3.72bn/-, while its accumulated losses went down to 0.87bn/- from 1.77bn/-.

TOL was the first listed company at DSE on 1998, but is yet to give dividends to date following years of making losses. The company last year completed the first round of the rehabilitation of its Aspen plant.

The completion improved reliability and efficiency where on average the plant is producing at 80 to 90 per cent efficiency.

The plant now can produce crude argon and it is expected that the plant will be in a position to produce pure argon in the second phase of repairs expected in the last quarter of 2015.

SOURCE: DAILY NEWS

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