TOL Gases Shareholders Rejoice as Dividend Soars by 25% on the Back of Profit Surge
Dar es Salaam, Shareholders of TOL Gases have every reason to celebrate as the company’s dividend per share sees a remarkable rise of 25%, attributed to a substantial increase in profits. The 28th annual general meeting held over the weekend in Dar es Salaam marked a pivotal moment for the company as shareholders endorsed a dividend of 50/- per share for the past year, a notable climb from the 40/- dividend paid in the preceding year of 2021.
Chairman of TOL Gases, Mr. Simon Mponji, addressed the shareholders with optimism, emphasizing the positive trajectory the company has maintained. “Our company’s journey has been good. I assure the stakeholders that the company is in a strong state,” Mr. Mponji asserted, radiating confidence in the company’s performance and prospects.
Expanding Horizons: Natural Gas Ventures
Mr. Mponji also unveiled the company’s strategic plans to diversify its portfolio, hinting at a venture into the burgeoning natural gas business within the country. “We will start in Dar es Salaam. We have already assembled a team of experts to evaluate the feasibility of entering this market. The team will conduct thorough technical and financial analyses,” he elaborated. This strategic move positions TOL Gases to explore new avenues of growth and capitalize on evolving market trends.
The Managing Director of TOL Gases, Mr. Daniel Warungu, confirmed that shareholders have endorsed the proposed dividend of 50/- per share, signifying a significant 10/- increase compared to the preceding year. “Looking ahead, we are optimistic about further increasing dividends next year,” Mr. Warungu commented, underscoring the company’s commitment to delivering value to its shareholders. He highlighted the impressive financial performance, noting that the company’s profit surged to 2.8 billion Tanzanian Shillings in 2022, up from 2.1 billion Tanzanian Shillings in the year prior.
Formerly known as Tanzania Oxygen Limited, TOL Gases has solidified its position as a pioneer in the Tanzanian gas industry over several decades. The company, which is 89% owned by Tanzanians, has been listed on the Dar es Salaam Stock Exchange (DSE), underscoring its commitment to transparency and accountability.
A Journey Through Time
The roots of TOL Gases trace back to its establishment in 1950 as a subsidiary of the African Oxygen and Acetylene Company (AFROX) of South Africa. The company’s history is characterized by adaptability and growth, as it became a branch of East Africa Oxygen Limited of Kenya in 1965, forming part of the BOC gases Group.
A significant turning point occurred in 1986 when BOC divested from Tanzania, leading to the government assuming full ownership and management of TOL Gases. This transition marked the beginning of a new era for the company, as it aligned its vision with the changing landscape of the Tanzanian gas industry.
TOL Gases’ 28th annual general meeting stands as a testament to the company’s resilience, innovation, and commitment to generating value for its shareholders. The 25% increase in dividend per share reflects a substantial rise in profits and reinforces the company’s robust financial position. As TOL Gases sets its sights on venturing into the natural gas business and diversifying its offerings, it continues to embrace its pioneering legacy while steering confidently towards a future of growth and prosperity.
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