The Kenyan Standard newspaper reports that BOC Gases will construct a Sh20 million filling plant in Uganda in the 2005/06 financial year.
According to managing director John Kariuki, the filling facility would assist the company to meet its distribution capacity in Uganda, while at the same time reducing transportation costs.
Kariuki informed the Standard the tank will be a small tank, which will cost about Sh20 million. Currently, the company fills its gas cylinders destined for Uganda in Nairobi.
Kariuki said the company would get the required capital internally. \\$quot;We will not borrow but use internally generated cash,\\$quot; he continued.
Between September 2004 and September 30, 2005 BOC’s total cash assets increased by six per cent to Sh440.9 million from Sh417.8 million in 2004, while the earnings per share rose to Sh10.62 in 2005 from Sh8.20 in 2004.
The company recently announced a full year net profit of Sh207.4 million for the period ending September 30, 2005, in which Kariuki said the distribution component represented a \\$quot;significant\\$quot; cost to the bottom line. BOC has already spent Sh119 million to improve its storage and distribution capacity.