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Kenya Power - what's the latest?
Rank: Member Joined: 9/11/2014 Posts: 228 Location: Nairobi
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VituVingiSana wrote:sparkly wrote:There must be a breakthrough in solar power capture and or storage. That's the only reason why a KShs 75B turnover firm would invest KShs 2.2B an year for 10 years to offset an item of operating costs. An average of 2.2bn/year is significant but not overly huge for EABL assuming it is spread out over 10 years and it gets: - Annual savings will offset some of the 2.2bn. - Depreciation provides a tax shield. - Carbon credits? - Inflation (2.2bn in 2022 > 2.2bn in 2032) Finally, the 1H21 net turnover was 44.5bn (lower than pre-COVID 1H20) so FY21 is likely to be 80-85bn. 22% Gross Margin of 5bn = 1.1bn which covers 50% of the average CAPEX. 22% Gross Margin of 10bn = 2.2bn which covers 100% of the average CAPEX In addition, there is additional benefit in being free of this company which is always in the grip of looters and mismanagement. Currently, perhaps because it is broke, they are busy disconnecting large blocks of users including the ones who have paid, then brazenly telling those who have paid, that they should help pressure the others to pay before they reconnect. Instead of disconnecting at individual cutouts, they disconnect at transformers and poles. They are not able to read the signs of the times and will help accelerate adoption of alternative sources of power. Useless,
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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iris wrote:VituVingiSana wrote:sparkly wrote:There must be a breakthrough in solar power capture and or storage. That's the only reason why a KShs 75B turnover firm would invest KShs 2.2B an year for 10 years to offset an item of operating costs. An average of 2.2bn/year is significant but not overly huge for EABL assuming it is spread out over 10 years and it gets: - Annual savings will offset some of the 2.2bn. - Depreciation provides a tax shield. - Carbon credits? - Inflation (2.2bn in 2022 > 2.2bn in 2032) Finally, the 1H21 net turnover was 44.5bn (lower than pre-COVID 1H20) so FY21 is likely to be 80-85bn. 22% Gross Margin of 5bn = 1.1bn which covers 50% of the average CAPEX. 22% Gross Margin of 10bn = 2.2bn which covers 100% of the average CAPEX In addition, there is additional benefit in being free of this company which is always in the grip of looters and mismanagement. Currently, perhaps because it is broke, they are busy disconnecting large blocks of users including the ones who have paid, then brazenly telling those who have paid, that they should help pressure the others to pay before they reconnect. Instead of disconnecting at individual cutouts, they disconnect at transformers and poles. They are not able to read the signs of the times and will help accelerate adoption of alternative sources of power. Useless, It will take years for the share price to reach ksh.5 Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: User Joined: 8/15/2013 Posts: 13,236 Location: Vacuum
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Ericsson wrote:iris wrote:VituVingiSana wrote:sparkly wrote:There must be a breakthrough in solar power capture and or storage. That's the only reason why a KShs 75B turnover firm would invest KShs 2.2B an year for 10 years to offset an item of operating costs. An average of 2.2bn/year is significant but not overly huge for EABL assuming it is spread out over 10 years and it gets: - Annual savings will offset some of the 2.2bn. - Depreciation provides a tax shield. - Carbon credits? - Inflation (2.2bn in 2022 > 2.2bn in 2032) Finally, the 1H21 net turnover was 44.5bn (lower than pre-COVID 1H20) so FY21 is likely to be 80-85bn. 22% Gross Margin of 5bn = 1.1bn which covers 50% of the average CAPEX. 22% Gross Margin of 10bn = 2.2bn which covers 100% of the average CAPEX In addition, there is additional benefit in being free of this company which is always in the grip of looters and mismanagement. Currently, perhaps because it is broke, they are busy disconnecting large blocks of users including the ones who have paid, then brazenly telling those who have paid, that they should help pressure the others to pay before they reconnect. Instead of disconnecting at individual cutouts, they disconnect at transformers and poles. They are not able to read the signs of the times and will help accelerate adoption of alternative sources of power. Useless, It will take years for the share price to reach ksh.5 This is the share that will make my kids and grandkids billionaires If Obiero did it, Who Am I?
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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maka wrote:Interesting how a company can be looted and plundered right before our eyes... Very sad state of affairs at KP. Plata O Plomo O Plomo Very irrelevant but intriguingly applicable in relation to your enquiry. ,Behold, a sower went forth to sow;....
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Swenani wrote:Ericsson wrote:iris wrote:VituVingiSana wrote:sparkly wrote:There must be a breakthrough in solar power capture and or storage. That's the only reason why a KShs 75B turnover firm would invest KShs 2.2B an year for 10 years to offset an item of operating costs. An average of 2.2bn/year is significant but not overly huge for EABL assuming it is spread out over 10 years and it gets: - Annual savings will offset some of the 2.2bn. - Depreciation provides a tax shield. - Carbon credits? - Inflation (2.2bn in 2022 > 2.2bn in 2032) Finally, the 1H21 net turnover was 44.5bn (lower than pre-COVID 1H20) so FY21 is likely to be 80-85bn. 22% Gross Margin of 5bn = 1.1bn which covers 50% of the average CAPEX. 22% Gross Margin of 10bn = 2.2bn which covers 100% of the average CAPEX In addition, there is additional benefit in being free of this company which is always in the grip of looters and mismanagement. Currently, perhaps because it is broke, they are busy disconnecting large blocks of users including the ones who have paid, then brazenly telling those who have paid, that they should help pressure the others to pay before they reconnect. Instead of disconnecting at individual cutouts, they disconnect at transformers and poles. They are not able to read the signs of the times and will help accelerate adoption of alternative sources of power. Useless, It will take years for the share price to reach ksh.5 This is the share that will make my kids and grandkids billionaires https://www.businessdail...h-sh750m-credit-3558684
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https://www.google.com/u...w1q0DHr4CU2lY4KmJ-s43Vk
https://www.google.com/u...w11Vk8ukpdMdHCmUwamRW4x
Companies install standby generators to cushion business from erratic electricity supply by kplc High cost of power driving enterprises into the brink of closure. The list of search is endless, but on the receiving end is kplc and kengen. Let's go the classed way of saying mighty things as below. If this trend continues, passengers and touts will own matatus and owners of matatus will face off in a rat-race fiasco. How will your offsprings be fairing  while caugh up in this meddling of mandled state of afair. ,Behold, a sower went forth to sow;....
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Rank: Member Joined: 3/16/2019 Posts: 313
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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Ngumi task force report released today. Some recommendations: No further signing of new IPPs Existing contracts to be renagotiated All the recommendations to be implemented by December. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Kenya Power traded 10.43 million shares yesterday. Today 1.13 million shares were traded Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 3/16/2019 Posts: 313
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Energy regime change long overdueQuote:The other day, a reader reached out to provide me with documents from the Companies’ Registry to show me that a member of the Kenya Electricity Workers Union (Ketawu) was a shareholder in one of the leading IPPs, arguing that this was a clear case of conflict of interest.
The union has just put out a statement calling for the removal from office of the board of Kenya Power that includes three members of the John Ngumi-led committee that has been at the forefront of calling for renegotiation of power purchase agreements. Quote:Indeed the main reason and motive for the spirited campaign to remove the current Kenya Power board members is because they have been trying to disrupt the networks that have captured the company by turning its supply chain into a veritable source of inexhaustible largesse.
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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2020/2021 Full year profit before tax at ksh.8.2 billion Profit after tax ksh.1.49bn Directors do not recommend payment of dividend. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
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Ericsson wrote: 2020/2021 Full year profit before tax at ksh.8.2 billion
Profit after tax ksh.1.49bn
Directors do not recommend payment of dividend. Dissapointing as usual. Ruined by the income tax and lack of dividend.
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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You actually expect a company with Kes 110 billion in debt to pay a dividend?
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Rank: Veteran Joined: 6/2/2010 Posts: 1,066
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Most likely the government will restructure some of this debt into equity and in so doing diluting the minority shareholders. Parastatals such as KPLC exist to provide an essential social service, profit well connected suppliers and provide jobs to the well connected. They are not ran to make a profit.
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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My 2 cents wrote:You actually expect a company with Kes 110 billion in debt to pay a dividend?  Exactly! How would a creditor who is being asked to restructure the loan feel when dividends are paid but the loan is not being serviced?  Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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My 2 cents wrote:Most likely the government will restructure some of this debt into equity and in so doing diluting the minority shareholders. Parastatals such as KPLC exist to provide an essential social service, profit well connected suppliers and provide jobs to the well connected. They are not ran to make a profit. The truth in red sums it up.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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VituVingiSana wrote:My 2 cents wrote:Most likely the government will restructure some of this debt into equity and in so doing diluting the minority shareholders. Parastatals such as KPLC exist to provide an essential social service, profit well connected suppliers and provide jobs to the well connected. They are not ran to make a profit. The truth in red sums it up.
This will change when govt cease being majority shareholder. Towards the goal of financial freedom
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Rank: Elder Joined: 12/4/2009 Posts: 10,678 Location: NAIROBI
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Ebenyo wrote:VituVingiSana wrote:My 2 cents wrote:Most likely the government will restructure some of this debt into equity and in so doing diluting the minority shareholders. Parastatals such as KPLC exist to provide an essential social service, profit well connected suppliers and provide jobs to the well connected. They are not ran to make a profit. The truth in red sums it up.
This will change when govt cease being majority shareholder. Punguza expectations,this is not happening soon. Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Veteran Joined: 4/4/2016 Posts: 1,997 Location: Kitale
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VituVingiSana wrote:My 2 cents wrote:You actually expect a company with Kes 110 billion in debt to pay a dividend? Exactly! How would a creditor who is being asked to restructure the loan feel when dividends are paid but the loan is not being serviced? The loans are being restructured. If viviene yeda stays for the next five years,Kenya power will be a sound company. Towards the goal of financial freedom
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Rank: Chief Joined: 1/3/2007 Posts: 18,095 Location: Nairobi
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Ebenyo wrote:VituVingiSana wrote:My 2 cents wrote:You actually expect a company with Kes 110 billion in debt to pay a dividend? Exactly! How would a creditor who is being asked to restructure the loan feel when dividends are paid but the loan is not being serviced? The loans are being restructured. If viviene yeda stays for the next five years,Kenya power will be a sound company. That doesn't answer the question. Until the loans are being regularly/properly serviced, the lenders will not look kindly upon dividends. Some loans have a provision that restricts dividends when loans are under not performing. As you said: "Punguza expectations" Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/23/2014 Posts: 909
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VituVingiSana wrote:Ebenyo wrote:VituVingiSana wrote:My 2 cents wrote:You actually expect a company with Kes 110 billion in debt to pay a dividend? Exactly! How would a creditor who is being asked to restructure the loan feel when dividends are paid but the loan is not being serviced? The loans are being restructured. If viviene yeda stays for the next five years,Kenya power will be a sound company. That doesn't answer the question. Until the loans are being regularly/properly serviced, the lenders will not look kindly upon dividends. Some loans have a provision that restricts dividends when loans are under not performing. As you said: "Punguza expectations" These companies on the NSE surely know how to "dart" Kenyans. They promise all the goodies and expectations we all want to hear but delivery = 0 Problem is we all know the scam but keep falling into the trap. “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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