Puma reports 45 percent growth in jet fuel volume

Puma reports 45 percent growth in jet fuel volume

Dar es Salaam. Tanzania’s aviation industry is indeed on a smooth path to recovery, with the latest data showing a rebound in fuel consumption.

Puma Energy Tanzania said in a statement yesterday that jet fuel volumes grew 45 percent year on year in 2022, nearing pre-Covid levels.

The company operates aviation fuel stations in eight airports on Tanzania’s mainland. In Zanzibar, the company said, the volume has increased by 43 percent year on year and has surpassed 2019 volumes. “The rebound in aviation fuel volume is an indication of renewed confidence in the tourism industry of Tanzania mainland and Zanzibar, and a reflection of a growing sense of optimism among industry stakeholders,” the company said yesterday.

According to the statement, Puma Energy was investing to construct a new hydrant pipeline at the Julius Nyerere International Airport in Dar es Salaam and that it would also install digital systems at Abeid Amani Karume International Airport in Zanzibar to reduce delays and enhance service quality.

The statement quotes the general manager for Puma Energy Tanzania, Ms Fatma Abdallah as saying that the planned investment was a deliberate move to support the country’s tourism, which is one of the key sectors of Tanzania’s economy. “Tourism is a critical contributor to Tanzania’s economic growth and our current and planned investment in state-of-the-art refuelling infrastructure and equipment across all airports in Tanzania has been critical as we work closely with the relevant authorities to support domestic airlines and encourage international airlines to increase the number of flights serving Tanzania,” she said.

Currently Puma Energy operates a 2000 cubic metre Jet-A1 import terminal in Zanzibar and has invested in a new 900 cubic metre Jet-A1 tank at the airport and operates eight airports across Tanzania, ensuring supply security and international service standards.

Additionally, plans to install solar solutions across the airport depot will encourage the deployment of clean energy solutions on the island while simultaneously reducing the carbon footprint of Puma Energy’s operations.

Since Puma Energy first established its presence in Zanzibar in 1995, the company has invested in infrastructure, vehicles and local staff development on the island to the value of Sh4.33 billion. In aviation, Puma Energy is a market leader in Tanzania across all eight airports and has invested in excess of Sh35 billion over the years to ensure the highest safety and operational standards.

Puma Energy works with various domestic airlines like Air Tanzania and international airlines including KLM, Ethiopian Airlines, Qatar Airways, Emirates, FlyDubai, Lufthansa Group and Airlink.

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Britam half-year net profit hits Sh2bn on higher investment income
Tanzania Foreign Investment News
Chief Editor

Britam half-year net profit hits Sh2bn on higher investment income

Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.

The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.

“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.

“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”

The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.

Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.

The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.

Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.

The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.

“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.

Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.

Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.

CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.

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