TOL Gases PLC Reports Strong Profit Growth, Urges Government to Buy Medical Oxygen from Private Producers



TOL Gases PLC has called on the Government to give more opportunities to companies with the capacity and expertise to produce medical oxygen for use in hospitals, arguing that private-sector producers have sufficient capacity to meet the country’s current and future demand.

The call was made today in Dar es Salaam by TOL Gases PLC Managing Director Daniel Warungu while speaking to journalists after the conclusion of the company’s 31st Annual General Meeting.

Warungu said private companies have invested heavily in oxygen production and therefore the Government should consider purchasing medical oxygen from them instead of investing in additional production plants.

“We are making significant investments to produce oxygen and ensure the availability of medical oxygen in hospitals. Our request is that, instead of the Government also investing in production, it should establish mechanisms to purchase oxygen from the private sector. TOL Gases has significant capacity and extensive expertise in oxygen production,” he said.

He added that the company believes the Government will consider the proposal, noting that the National Development Vision 2050 provides an opportunity for the private sector to become a key partner in implementing national development priorities.

Regarding the company’s financial performance, Warungu said TOL Gases’ revenue increased from TZS 30.2 billion in 2024 to TZS 31.15 billion in 2025.

He said earnings before interest, taxes, depreciation and amortization (EBITDA) increased from TZS 10.5 billion to TZS 13.4 billion, while profit before tax rose from TZS 3.98 billion to TZS 6.78 billion.

He further noted that the company’s profit after tax reached TZS 3.98 billion in 2025, compared with TZS 2.06 billion in 2024.

Warungu said TOL Gases is continuing to expand its production capacity through two major projects. One of them is the construction of the Ikama III plant, which will produce carbon dioxide and is expected to begin operations in September 2027. The project is expected to increase production capacity and strengthen the availability of carbon dioxide.

The company is also constructing a new Air Separation Unit (ASU) with support from the Clinton Health Access Initiative (CHAI). The facility is expected to become operational in October 2026 and will increase oxygen production capacity to approximately 20 tonnes per day, in addition to the facility that began operating in 2021.

Warungu said the investments will improve production efficiency, facilitate maintenance of equipment without significantly disrupting operations, and increase the company’s ability to meet demand for medical and industrial gases.

For his part, TOL Gases Board Chairman Leonard Kitoka said Tanzania currently has sufficient capacity among private producers to meet both current and future demand for medical oxygen, particularly following recent investments in production facilities.

Speaking about the company’s performance on the stock market, Kitoka said TOL Gases’ share price on the Dar es Salaam Stock Exchange (DSE) had increased from TZS 795 at the time of the previous Annual General Meeting to a high of TZS 1,490, representing an increase of approximately 74 percent. The shares are currently trading between TZS 1,320 and TZS 1,490.

TOL Gases said public resources could be used more efficiently to expand demand and improve access to medical oxygen rather than investing further in production capacity.

The company recommended that hospitals and health facilities be enabled to purchase quality-assured oxygen from existing private producers. According to the company, this would help maximise existing production capacity, avoid duplication of investments and ensure a sustainable supply of affordable medical oxygen.

TOL Gases reaffirmed its commitment to working with the Government, health institutions and development partners to ensure the availability of safe and quality medical oxygen in Tanzania, while continuing to invest in production, distribution and technical expertise.

Meanwhile, Warungu said shareholders unanimously agreed not to distribute dividends from the company’s profits. Instead, the funds will be reinvested in infrastructure development to strengthen the company’s capacity and increase future revenues.

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