TotalEnergies Marketing Kenya PLC has posted a strong set of results for 2025, growing its profit significantly even as overall revenue dipped.
The firm reported a profit after tax of Ksh 2.17 billion for the year ended December 31, 2025, up from Ksh 1.49 billion in 2024. The jump reflects a year where efficiency, pricing adjustments and operational discipline mattered more than topline growth.
Revenue from contracts with customers fell to Ksh104.0 billion, down from Ksh114.2 billion the previous year. But despite the drop, the company still managed to expand its gross profit sharply to Ksh11.98 billion from Ksh8.99 billion.
This improvement was largely driven by better retail margins and higher sales volumes, especially after regulatory changes in fuel pricing structures.
“The Company delivered a strong financial performance, recording a profit after tax of Ksh2,171 million (2024: Ksh1,487 million), demonstrating the resilience of the Company’s business model and the disciplined execution of its strategy. The Company’s gross margins increased to Ksh11,978 million (2024: Ksh8,994 million), supported by higher sales volumes and an increase in margins following the review of retail margins by the regulator,” the company said in its annual report.
A major contributor to the improved profitability was a sharp reduction in the cost of sales, which dropped to Ksh 92.0 billion from Ksh 105.2 billion. This helped cushion the impact of lower revenue and boosted overall margins.
At the same time, operating expenses rose to Ksh8.72 billion from Ksh7.51 billion. The increase was linked to higher depreciation costs, rising expenses for imported services, and inflation-related adjustments across the business. Even so, the company appears to have kept a firm grip on its cost base.
Finance costs saw a notable decline, falling to Ksh1.69 billion from Ksh3.83 billion, helped by lower interest rates and improved debt management. This gave the company more breathing room and directly supported the bottom line.
Cash flow remained solid throughout the year. The company generated Ksh7.65 billion from operating activities, slightly higher than the Ksh 7.34 billion recorded in 2024. This steady cash generation continues to be one of the company’s key strengths, allowing it to fund investments and shareholder returns comfortably.
On the investment side, TotalEnergies spent Ksh2.19 billion, largely on property, plant and equipment — a sign it is still putting money into expanding and maintaining its network. Overall capital expenditure for the year stood at Ksh2.57 billion, in line with its long-term growth plans.
Financing activities used Ksh 3.46 billion, covering dividend payouts and lease obligations. By the end of the year, cash and cash equivalents stood at Ksh 13.44 billion, up from Ksh 11.44 billion, reinforcing its strong liquidity position.
The balance sheet also showed steady growth. Total assets rose to Ksh69.19 billion from Ksh67.93 billion, while shareholders’ equity increased to Ksh 33.67 billion. Total liabilities stood at Ksh 35.52 billion, indicating a relatively balanced capital structure.
The company’s performance was also supported by a more stable macroeconomic environment in Kenya. Improved weather conditions boosted agriculture, while sectors such as construction, manufacturing and services continued to expand. Inflation remained within the Central Bank of Kenya’s target range, easing pressure on both consumers and businesses.
Beyond fuel sales, TotalEnergies is increasingly leaning into diversification. The company has been expanding non-fuel revenue streams, including convenience retail, food services and strategic partnerships at its service stations — a model that is becoming more important as the global energy landscape shifts.
However, not everything moved in a positive direction. Foreign exchange movements resulted in a loss of Ksh 156 million, compared to a gain of Ksh 2.07 billion in 2024, highlighting the continued volatility in currency markets.
Despite that, shareholders are set to benefit from the improved performance. The board has recommended a final dividend of Ksh 3.45 per share for 2025, up from Ksh 1.92 per share the previous year. The proposal will be tabled at the company’s 72nd Annual General Meeting scheduled for June 24, 2026, with payment expected around July 31 if approved.
Looking ahead, TotalEnergies says it plans to deepen its footprint in Kenya while maintaining a focus on safety, operational efficiency and profitability. The company is also stepping up efforts in renewable energy, aiming to tap into the growing demand for cleaner energy solutions as the country transitions.
At the same time, it acknowledges ongoing risks, including global oil price fluctuations, financial market uncertainty, environmental pressures and geopolitical tensions, all of which could shape performance in the coming years.
Leave a comment