cnn wrote:sparkly wrote:PKoli wrote:Very informative. From June when article was released to date Kengen must have added at least 100MW of steam. I am looking at steam availability of around 500 MW. They should adopt a strategic partnership going forward, where Kengen equity is the Wells. A strategic partner will finance power plant construction. .
@PKoli I am aware they sell steam to Oserian and are also drilling for Akira but steam sales of 3B plus looks like on the
higher side. From their results,steam sales were 538m with 1.96B being from steam resource maintenance services.Adding up to the 2.4billion total steam revenues.
KenGen is not selling steam to anyone as yet [ The 50 MW wellhead leasing is not yet live]. So question is to whom are they selling the steam?
There had been talk of
asset backed securities . Could KenGen have sold already drilled steam meant for Olkaria 6 & 7 as a way to secure funds for upcoming geothermal projects ?. If so this should have been material information that should have been made public.
In
this article, Mr Mudanyi is quoted thus:
"the company is also considering using future revenue from sales of geothermal steam as collateral in order to raise funds to invest in more geothermal production."
We could be waiting for a rights issue but instead will be hit with an asset backed bond sale. A SPV could be formed that would ensure revenue from the new plants will service the repayments of the bond.
More articles on this
here and
here