PERFORMANCE FOR THE YEAR
The detailed financial performance of the company during the year can obtained on TOL a financial report through a link below, the shows a profit before tax of TZS 2,290 million (2013: profit of 945 million), an increase of 142% over last year, while the net sales growth was 35% over the last
FUTURE DEVELOPMENT PLANS
The company is well on course to full recovery and is tracking well along the turnaround strategy 2011-2015 as evidenced by the performance of this year. Board is confident that the objectives of the turnaround strategy will be achieved. The following are updates and developments of major initiatives in the turnaround strategy:
(i) The first round of the rehabilitation of the ASPEN plant was completed which resulted in very good reliability and efficiency. On average the plant is producing at 80-90% efficiency.
Total power consumption per cubic meter of gas produced has come down by 43%. The plant can now 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 the last quarter 2015. In line with this, the company has increased storage capacity for liquid gases. This will ensure continuous availability of industrial gases into the market and also save the company costs through production by batch method.
Following these improvements on the ASPEN plant, the company is engaged in finding customers for bulk liquid oxygen and nitrogen in the neighbouring countries of Kenya, Zambia and Zimbabwe. Already one such customer from Zambia has been engaged through a supply contract beginning second quarter 2015. Marketing and selling liquid oxygen and nitrogen within and outside the country is one of the company’s top priorities.
(ii) Carbon dioxide (CO2) line continues to grow as the company continues to demonstrate its reliability and consistency of supplying high quality food grade CO2 to both local and foreign bottling customers. Storage capacity was increased by 100 tons during the year, three additional 20 ton tankers were also added during the year. The company will continue to invest in both its storage and transport capacity for CO2 to strengthen reliability and increase market share across East Africa and SADC region. Already the company is supplying Malawi, Zambia and DRC markets.
The company has overcome all the production bottlenecks and more efforts are employed on building customer intimacy, aggressive marketing and brand awareness. In the midst of this, the company has acquired a plot in Mtwara which is a strategic location to tap into oil and gas sector in both Southern Tanzania and Northern Mozambique.
The company has made significant strides towards recovering its regional market share in carbon dioxide market following capacity enhancement and renewal of distribution fleet.
Besides domestic market the company has been supporting customers in other SADC countries of Malawi and Zambia and DRC. While competition is expected to increase in these markets following other new entrants, TOL is well positioned to capitalise also on the expected growth in the beverage sector in the region.
Further, refurbishment of ASPEN 1000 will see the company realize it’s preferred status as a reliable and competitive supplier of liquid oxygen, nitrogen and argon gases in the region. At a time when oil and gas mining in the region is beginning to take shape, refurbishment of the
ASPEN 1000 has been the right step to take as this sector offers the opportunity to utilize what has been otherwise oversized plant until now.
In conclusion, TOL’s future remain bright and promising. The company is on course to full
recovery and is expected to reverse the accumulated losses in the course of financial year
The Directors do not recommend dividends in respect of the year ended 31 December 2014
Further details can be obtained through the link below in TOL financial report