THE price of TOL Gases share is rallying days after the industrial and hospital gas manufacturer announced a hefty profit increase and dividend.
The share rallied from 640/- last Wednesday to 700/- yesterday as investors are rushing to cash in returns before shares start trading ex-dividend.
TOL Chairman, Mr Michael Shirima said the net profit went up by 41 per cent to 3.3bn/- last year from 2.8bn/- in 2020 warranting an increasing dividend payout for last year.
“We are able to overcome challenges brought by the impact of COVID-19,” said Mr Shirima at the AGM recently.
During the Covid-19 the gas manufacturer saw its medical oxygen sales increase to enable the national fight against the pandemic. TOL sale revenue last year went up by 25 per cent from 19bn/- to 24.8bn/-.
The Annual General Meeting (AGM) endorsed the dividend of 40/- for last year, compared to 34/78 issued in 2020.
On top of that, TOL is eyeing the SADC market especially after launching a gas plant in Rungwe district of Mbeya region, while beefing up its transport fleet.
TOL launched its fourth carbon-dioxide gas project in Ikama village, Rungwe district, doubling the company’s capacity to produce industrial and medical grade carbon dioxide.
The new development will enable the company to expand its market share in local as well as foreign markets such as Zambia, Zimbabwe, The Democratic Republic of Congo and Malawi.
The plant with a total project value of 13.65bn/- has an estimated lifetime of 20 years with a capacity to produce 2.0 tons per hour.
