TOL Gases Limited reported 17 per cent rise in 2021 profit on the back of rise in gas sales volumes during Covid-19 pandemic.
The company’s financial statement made public on Thursday showed pre-tax profit rose to 4.478bn/- up from 3.8bn/- in 2020, boosted by growth in sales revenue as Covid-19 raised demand for medical oxygen.
Sales revenue for the Dar es Salaam Stock Exchange (DSE) listed firm increased by 25 per cent to 24.85bn/- from 19.82bn/- in 2020 mainly attributed to sales of medical equipment and oxygen cylinders to the government and other private hospitals in the fight against Covid-19 pandemic.
EBITDA improved by 15 per cent to 7.6bn/- from 6.6bn/- in 2020 driven by the increase in revenue and operational efficiencies. Shares price at DSE gained by 1.67 per cent to 610/- on Thursday from 600/-.
TOL counter had 3,100 shares traded at weighted average price of TZS 610 per share in 1 deal/ The local industrial and medical gas supplier doubled its carbon dioxide production and distribution capacity in 2021 following the rise in demand for carbon dioxide within the country as well as from the neighbouring SADC countries.
The company managed to procure a brand-new Air Separation Unit to replace the aged and oversized Aspen 1000 plant during in 2021.
Installation and commissioning of the plant was completed in July 2021 helped the company end the perennial lack of reliability of supplies of oxygen and nitrogen gases in the domestic market as well as neighbouring countries. It also helped to save considerable amount of cost and improve the company’s cash flow.
Future outlook for the firm looks bright with expected rise in demand for medical and industrial gas in Tanzania and neighbouring countries, the company says.
The key to their future outlook is increasing number of blue-chip bottling and brewing companies who have expressed willingness to enter into a longterm commitment with TOL for supply of food grade carbon dioxide.
TOL Gases Limited produces and distributes gases for the industrial and medical segment in Tanzania. Known as Tanzania Oxygen, the company provides oxygen, compressed air, carbon dioxide, inert, hydrogen, nitrogen, ammonia, argon, nitrous oxide, helium and acetylene gases.
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