CHAIRMAN'S STATEMENT 2016.
I am pleased to report that our Company delivered a good set of financial results for 2016 despite very challenging economic conditions. The business delivered a record performance with strong growth in, profit and some extent revenue.
We achieved this growth by delivering our clear strategy and focus of investing for reliability, responsiveness and our disciplined approach to cost control. The capabilities that the business has built with this regard have positioned the Company well to capitalize on regional opportunities from SADC markets of Zambia, Malawi, Mozambique and Zimbabwe in addition to local Tanzanian market.
Revenue grew by 8% from Tshs 14.9Billion in the financial 2015 to Tshs 16.1Billion. Profit before tax grew by 41% from Tshs 2.2 Billion to Tshs 3.1Billion whereas Profit after tax grew by 23% from Tshs 2.2Billion to Tshs 2.7Billion. Shareholder’s wealth has grown from Tshs 0.5Billion in 2015 to Tshs 3.2Billion in the financial year 2016. These results clearly show that we are delivering on our strategy.
Graph 1 below shows some of the key performance indicators of the Company.
Graph 1: Key performance indicators of shareholder value
While acknowledging shareholders longing for the long awaited dividend, more so now that our Company has returned to profitability, a little more Board of Directors is recommending reinvestment of the company’s profits to strengthen the Company’s market position.
Looking forward, our Company will continue to implement our growth strategy expanding into SADC and East African markets. I am pleased to report that we been granted incorporation certificates for our planned Zimbabwe branch. Management is on high gear to commence operating the branch.
Towards the same goal of protecting our business from competition while at the time growing the business, The Board of Directors have been evaluating potential options for collaboration with other regional or international gas companies with a view to overcoming some of the challenges that our Company has been facing such as relying on debts for working capital or for supporting growth and expansion. The aim of exploring such opportunities is to shorten the length of time shareholders have to wait to receive dividends.
Vote of thanks
I would like to take this opportunity to thank our staff members for their valued contribution to commendable results in the financial year 2016. Similarly, I would like to thank the Board of Directors, Management, our valued customers and all stakeholders for their support and hard work during the year. We can all be proud of what we have achieved this far and much more to look forward to in the financial year 2017.
Eng. Harold Temu
Thank you all and God bless you.