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Kengen FY16
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Gatheuzi
#51 Posted : Monday, October 24, 2016 8:09:17 AM
Rank: Veteran

Joined: 8/16/2009
Posts: 994
Ebenyo wrote:
Ericsson wrote:
@Ebenyo
So in summary the company had cashflow issues which made it not to be able to pay GoK dividends


The way it looks,thats the case.But i dont understand why the company will suffer cash flow when the just released financial statement quotes kshs 136 bilion in 'retained earnings and reserves'.Even if they are in form of assets and not cash,getting part of it in cash to ease financial pressure could have made sense.Why cheat shareholders to buy rights issue of just 29 bilion when you have 136 bilion in reserve? This man Mugo must really be a crook.They are cheating us.
Compensating tax does not make sense at all.Why should a company be taxed for delaying to pay dividends?
Last year they spruced up the financial results just to make the rights a success.The company was given tax credit then,but this year no.
Im beggining to doubt the mgt of this company.They are not having minority shareholders interest at mind.

@ebenyo it is very hard to liquidate assets held by Kengen. We are talking of dams, turbines etc. They may have a few buildings but selling them will not raise the billions needed for the projects.
Time is money, so money is time. Money saved is time gained in reverse! Money stores your life’s energy. You expend your energy, get paid money, and store that money for a future purchase made in a currency.
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Ebenyo
#52 Posted : Monday, October 24, 2016 9:34:17 AM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
Gatheuzi wrote:
Ebenyo wrote:
Ericsson wrote:
@Ebenyo
So in summary the company had cashflow issues which made it not to be able to pay GoK dividends


The way it looks,thats the case.But i dont understand why the company will suffer cash flow when the just released financial statement quotes kshs 136 bilion in 'retained earnings and reserves'.Even if they are in form of assets and not cash,getting part of it in cash to ease financial pressure could have made sense.Why cheat shareholders to buy rights issue of just 29 bilion when you have 136 bilion in reserve? This man Mugo must really be a crook.They are cheating us.
Compensating tax does not make sense at all.Why should a company be taxed for delaying to pay dividends?
Last year they spruced up the financial results just to make the rights a success.The company was given tax credit then,but this year no.
Im beggining to doubt the mgt of this company.They are not having minority shareholders interest at mind.

@ebenyo it is very hard to liquidate assets held by Kengen. We are talking of dams, turbines etc. They may have a few buildings but selling them will not raise the billions needed for the projects.


In the next results,mgt should deferenciate between 'net asset value' and 'retained earnings'.They are two different things.For now we may live with the eps of 1.08.Lets wait for HY results in february 2017.Meanwhile lets take advantage of the falling price to work down our ABP.
Towards the goal of financial freedom
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  | | Edit by user: Monday, October 24, 2016 9:36 AM | Reason: Not specified
MadDoc
#53 Posted : Monday, October 24, 2016 11:35:06 AM
Rank: Member

Joined: 10/26/2015
Posts: 151
Gatheuzi wrote:
Ericsson wrote:
@Ebenyo
So in summary the company had cashflow issues which made it not to be able to pay GoK dividends

Gok owed Kengen 5.4B and Kengen withheld dividend payment of 5.7B. Paying this according to MD would have meant going for overdrafts. It also turns out this compensating tax has been paid over other years only that the effect was not felt much as it was going to minorities.

Quote:
The Nairobi Securities Exchange-listed KenGen paid compensating tax of Sh57.4 million in 2012 and another Sh96.5 million in 2014 arising from dividend payouts to its minority shareholders.


The main reason for compensating tax (very punitive at 42.8%) is because once you receive tax credits you are encouraged to retain it into the business and not distribute the same to shareholders. If mgt was smart they would have advised shareholders to take a dividend drought for the 3 years.


This makes a whole lot of sense.
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sparkly
#54 Posted : Monday, October 24, 2016 4:34:00 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ebenyo wrote:
Gatheuzi wrote:
Ebenyo wrote:
Ericsson wrote:
@Ebenyo
So in summary the company had cashflow issues which made it not to be able to pay GoK dividends


The way it looks,thats the case.But i dont understand why the company will suffer cash flow when the just released financial statement quotes kshs 136 bilion in 'retained earnings and reserves'.Even if they are in form of assets and not cash,getting part of it in cash to ease financial pressure could have made sense.Why cheat shareholders to buy rights issue of just 29 bilion when you have 136 bilion in reserve? This man Mugo must really be a crook.They are cheating us.
Compensating tax does not make sense at all.Why should a company be taxed for delaying to pay dividends?
Last year they spruced up the financial results just to make the rights a success.The company was given tax credit then,but this year no.
Im beggining to doubt the mgt of this company.They are not having minority shareholders interest at mind.

@ebenyo it is very hard to liquidate assets held by Kengen. We are talking of dams, turbines etc. They may have a few buildings but selling them will not raise the billions needed for the projects.


In the next results,mgt should deferenciate between 'net asset value' and 'retained earnings'.They are two different things.For now we may live with the eps of 1.08.Lets wait for HY results in february 2017.Meanwhile lets take advantage of the falling price to work down our ABP.


Utilities are worth the cash they generate.

Kengen should be able to pay suppliers, pay loans, pay dividends with cash generated from electricity sales. So long as people are paying for stoma all stakeholders should get their share since the cost of long term maturing debts is similar to the cost of equity.
Life is short. Live passionately.
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Ebenyo
#55 Posted : Monday, October 24, 2016 8:46:05 PM
Rank: Veteran

Joined: 4/4/2016
Posts: 2,016
Location: Kitale
sparkly wrote:
Ebenyo wrote:
Gatheuzi wrote:
Ebenyo wrote:
Ericsson wrote:
@Ebenyo
So in summary the company had cashflow issues which made it not to be able to pay GoK dividends


The way it looks,thats the case.But i dont understand why the company will suffer cash flow when the just released financial statement quotes kshs 136 bilion in 'retained earnings and reserves'.Even if they are in form of assets and not cash,getting part of it in cash to ease financial pressure could have made sense.Why cheat shareholders to buy rights issue of just 29 bilion when you have 136 bilion in reserve? This man Mugo must really be a crook.They are cheating us.
Compensating tax does not make sense at all.Why should a company be taxed for delaying to pay dividends?
Last year they spruced up the financial results just to make the rights a success.The company was given tax credit then,but this year no.
Im beggining to doubt the mgt of this company.They are not having minority shareholders interest at mind.

@ebenyo it is very hard to liquidate assets held by Kengen. We are talking of dams, turbines etc. They may have a few buildings but selling them will not raise the billions needed for the projects.


In the next results,mgt should deferenciate between 'net asset value' and 'retained earnings'.They are two different things.For now we may live with the eps of 1.08.Lets wait for HY results in february 2017.Meanwhile lets take advantage of the falling price to work down our ABP.


Utilities are worth the cash they generate.

Kengen should be able to pay suppliers, pay loans, pay dividends with cash generated from electricity sales. So long as people are paying for stoma all stakeholders should get their share since the cost of long term maturing debts is similar to the cost of equity.


You are right.
Total revenue of 38 bilion is enough amount to please all stakeholders.With EPS of 1.08,ROE of 3.9% ROA of 1.8% the future is surely not bad.
Towards the goal of financial freedom
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Ericsson
#56 Posted : Wednesday, October 26, 2016 6:17:24 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Investor briefing for full year results is today
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Angelica _ann
#57 Posted : Wednesday, October 26, 2016 6:21:41 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
Crooks
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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ARAP CHARLES
#58 Posted : Wednesday, October 26, 2016 7:27:03 AM
Rank: Member

Joined: 5/30/2016
Posts: 217
Location: Talai
Angelica _ann wrote:
Crooks


so we are officially headed to the right price of 3.50cts.d'oh!
Watch and Listen and Live
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K22
#59 Posted : Wednesday, October 26, 2016 9:14:06 AM
Rank: Member

Joined: 9/12/2008
Posts: 436
Location: illobi
ARAP CHARLES wrote:
Angelica _ann wrote:
Crooks


so we are officially headed to the right price of 3.50cts.d'oh!


Right price was 3.50/-? d'oh!

A successful man is one who makes more money than his wife can spend. A successful woman is one who can find such a man
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Angelica _ann
#60 Posted : Wednesday, October 26, 2016 9:41:44 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
K22 wrote:
ARAP CHARLES wrote:
Angelica _ann wrote:
Crooks


so we are officially headed to the right price of 3.50cts.d'oh!


Right price was 3.50/-? d'oh!

Right price not Rights price smile
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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