TOL records 41 percent profit, despite Covid-19 impacts

September 10, 2022

The TOL Gases Limited has reported a record 41 percent increase of profit despite the recent economic turbulence that hit many sectors in the country..

The profit has been accumulated from the sale of oxygen to healthcare facilities and carbon dioxide for industrial purposes both in the domestic and foreign markets. The company's financial statements for the year ending December 2021 shows that TOL’s revenue grew by 25 percent from Sh19.8 billion recorded in December 2020 to Sh.24.8billion. According to the company, the profit after taxation grew by 41 percent from Sh2.3 billion recorded in 2020 to Sh3.3 billion in 2021.

“Following the achievement, the company has resolved to provide Sh40 dividend per share. The amount is equivalent to an increase of Sh5.22 per share compared to Sh34.78 recorded in 2020,” said TOL managing director Daniel Warungu. He attributed the company’s increase in profits to the government’s procedure to abandon imposing lockdown, something that enabled the country to sell oxygen to neighbouring countries.

Mr Warungu who was speaking during the 24th TOL Annual General Meeting (AGM) said during pandemic the company found reliable markets in the Southern African Development Community (SADC) countries. Also, he attributed the success to the recent reforms and expansion strategies that has solidified its position as a leading producer and supplier of oxygen for industrial and medical purposed in the region. The countries that imported oxygen from Tanzania include Zambia, Zimbabwe, the Democratic Republic of Congo (DRC) and Malawi.

TOL board chairman Michael Shirima commended the company’s performance and the way it ensured availability of oxygen across the country at the peak of the pandemic.

"Covid-19 devastated all segments of the economy in 2020, but you managed to continue supplying oxygen to Tanzania healthcare facilities,” he told the meeting

During the meeting, the company outlined different strategic measures aimed to significantly further improve the company’s financial performance.According to Mr Warungu, the company has recently launched a new plant in Rungwe District expected to double the company’s capacity of oxygen and carbon dioxide for industrial purposes.

“The company continued to invest in embedding reliability into its operations and significantly invested into procurement of new trucks and tankers in order to increase its ability to deliver the products on time to its customers in the region,” he said.The new plant located in Ikama Village, Rungwe District in Mbeya Region is expected to monthly revenues by Sh8.2 billion, about 42 percent of revenue increase for carbon dioxide alone.