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Kengen FY16
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VituVingiSana
#221 Posted : Friday, February 24, 2017 6:35:02 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,347
Location: Nairobi
sparkly wrote:
VituVingiSana wrote:
http://www.businessdailyafrica.com/corporate/KenGen-sell-5pc-stake-South-Africa-pension-fund/539550-3824706-10xt67uz/index.html

Good news for KenGen the Company which needs this cash. On the other hand, folks bought Rights Shares at 6.55 [opportunity cost] months ago. No dividend. That 6.55 could have earned interest for those months but...

It would not have made sense for the Pension Fund nor KenGen to buy from the market. KenGen wanted the cash. The Pension Fund ends up with shares worth more i.e. better to give the cash to KenGen to fund the business rather than simply "transfer" cash.

The Pension Fund can always buy more shares [& is likely to do so] from the market.


Not enough float in the market. They would have to buy out the 2,3,4 and 5th largest shareholders.

Does KenGen need more cash? KenGen should enter into a Convertible Debt arrangement that eventually leads to PIC owning 10-25% of KenGen. It helps KenGen reduce its debt:equity ratio.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Ericsson
#222 Posted : Friday, February 24, 2017 6:44:11 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
VituVingiSana wrote:
sparkly wrote:
VituVingiSana wrote:
http://www.businessdailyafrica.com/corporate/KenGen-sell-5pc-stake-South-Africa-pension-fund/539550-3824706-10xt67uz/index.html

Good news for KenGen the Company which needs this cash. On the other hand, folks bought Rights Shares at 6.55 [opportunity cost] months ago. No dividend. That 6.55 could have earned interest for those months but...

It would not have made sense for the Pension Fund nor KenGen to buy from the market. KenGen wanted the cash. The Pension Fund ends up with shares worth more i.e. better to give the cash to KenGen to fund the business rather than simply "transfer" cash.

The Pension Fund can always buy more shares [& is likely to do so] from the market.


Not enough float in the market. They would have to buy out the 2,3,4 and 5th largest shareholders.

Does KenGen need more cash? KenGen should enter into a Convertible Debt arrangement that eventually leads to PIC owning 10-25% of KenGen. It helps KenGen reduce its debt:equity ratio.


PIC is looking at maximising it's return because the money they have invested is pensioner's money.
KENGEN wanted to achieve it's rights issue amount target and they've done that.Seems they were so much in need of the money.
PIC may either increase it's stake or reduce in the coming future.
As for convertible debt I don't think PIC has the muscle to fund the huge projects kengen is undertaking.That is why their projects its a G-G arrangement type.
Convertible debt in an african context is a way of finishing or killing a company.There is no good case study to talk about
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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sparkly
#223 Posted : Friday, February 24, 2017 8:25:31 PM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Ericsson wrote:
VituVingiSana wrote:
sparkly wrote:
VituVingiSana wrote:
http://www.businessdailyafrica.com/corporate/KenGen-sell-5pc-stake-South-Africa-pension-fund/539550-3824706-10xt67uz/index.html

Good news for KenGen the Company which needs this cash. On the other hand, folks bought Rights Shares at 6.55 [opportunity cost] months ago. No dividend. That 6.55 could have earned interest for those months but...

It would not have made sense for the Pension Fund nor KenGen to buy from the market. KenGen wanted the cash. The Pension Fund ends up with shares worth more i.e. better to give the cash to KenGen to fund the business rather than simply "transfer" cash.

The Pension Fund can always buy more shares [& is likely to do so] from the market.


Not enough float in the market. They would have to buy out the 2,3,4 and 5th largest shareholders.

Does KenGen need more cash? KenGen should enter into a Convertible Debt arrangement that eventually leads to PIC owning 10-25% of KenGen. It helps KenGen reduce its debt:equity ratio.


PIC is looking at maximising it's return because the money they have invested is pensioner's money.
KENGEN wanted to achieve it's rights issue amount target and they've done that.Seems they were so much in need of the money.
PIC may either increase it's stake or reduce in the coming future.
As for convertible debt I don't think PIC has the muscle to fund the huge projects kengen is undertaking.That is why their projects its a G-G arrangement type.
Convertible debt in an african context is a way of finishing or killing a company.There is no good case study to talk about


Additionally the South Africans are bad strategic partners
Life is short. Live passionately.
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Ericsson
#224 Posted : Tuesday, February 28, 2017 1:35:43 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Kenya Electricity Generating Company Ltd (KenGen) has contracted a group led by Japanese industrial major Mitsubishi Corp to build a 140-MW geothermal power plant in Kenya (Olkaria V).
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Ericsson
#225 Posted : Tuesday, February 28, 2017 2:10:46 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
KenGen has begun the search for the replacement of outgoing CEO Albert Mugo. The new CEO would assume office in August this year.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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maka
#226 Posted : Wednesday, March 01, 2017 10:04:00 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.

The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.
possunt quia posse videntur
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sparkly
#227 Posted : Wednesday, March 01, 2017 10:09:42 AM
Rank: Elder

Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
maka wrote:
The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.

The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.


HY EPS 0.74.

Positive cash position as at reporting date 6.55B

Massaging of profits for the rights in 2015 clear. There was no disclosure then that 1.6B of steam revenue was revenue in arrears
Life is short. Live passionately.
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  | | Edit by user: Wednesday, March 01, 2017 10:13 AM | Reason: Not specified
cyruskulei
#228 Posted : Wednesday, March 01, 2017 10:18:09 AM
Rank: Member

Joined: 3/9/2010
Posts: 320
Location: kenya
sparkly wrote:
maka wrote:
The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.

The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.


HY EPS 0.74.

Positive cash position as at reporting date 6.55B

Massaging of profits for the rights in 2015 clear. There was no disclosure then that 1.6B of steam revenue was revenue in arrears


Can this counter be allowed to do what kplc are doing. And if so what happens to Kplc
Work hard at your job and you can make a living. Work hard on yourself and you can make a fortune.
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Spikes
#229 Posted : Wednesday, March 01, 2017 10:35:07 AM
Rank: Elder

Joined: 9/20/2015
Posts: 2,811
Location: Mombasa
sparkly wrote:
maka wrote:
The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.

The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.


HY EPS 0.74.

Positive cash position as at reporting date 6.55B

Massaging of profits for the rights in 2015 clear. There was no disclosure then that 1.6B of steam revenue was revenue in arrears


Eti HY EPS of 0.74 ukwaju nkt!
John 5:17 But Jesus replied, “My Father is always working, and so am I.”
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  | | Edit by user: Wednesday, March 01, 2017 3:12 PM | Reason: Not specified
Fyatu
#230 Posted : Wednesday, March 01, 2017 10:58:24 AM
Rank: Veteran

Joined: 1/20/2011
Posts: 1,820
Location: Nakuru
cyruskulei wrote:
sparkly wrote:
maka wrote:
The country’s largest power producing company, Kenya Electricity Generating (KenGen) Company has announced a 22 per cent drop in its half year profit before tax to Ksh 6.57 Billion compared to Ksh 8.4 billion posted in the same period in 2015.

The huge drop was as a result of declined total revenue which fell to Ksh 17.739 billion from Ksh 20 Billion in 2015 on lower revenue from steam and commercial drilling services.


HY EPS 0.74.

Positive cash position as at reporting date 6.55B

Massaging of profits for the rights in 2015 clear. There was no disclosure then that 1.6B of steam revenue was revenue in arrears


Can this counter be allowed to do what kplc are doing. And if so what happens to Kplc


What is KPLC doing?
Dumb money becomes dumb only when it listens to smart money
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