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Kenya Power - what's the latest?
stocksmaster
#641 Posted : Thursday, September 19, 2024 12:47:50 PM
Rank: Member


Joined: 9/26/2006
Posts: 401
Location: CENTRAL PROVINCE
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting
KaunganaDoDo
#642 Posted : Thursday, September 19, 2024 1:02:02 PM
Rank: Member


Joined: 8/6/2018
Posts: 299
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share
Ericsson
#643 Posted : Saturday, September 21, 2024 7:50:56 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,671
Location: NAIROBI
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share



\That transaction will hit a cropper,KETRACO has no capacity to maintain those transmission line assets
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
watesh
#644 Posted : Monday, September 23, 2024 9:55:22 AM
Rank: Veteran


Joined: 8/10/2014
Posts: 966
Location: Kenya
Ericsson wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share



\That transaction will hit a cropper,KETRACO has no capacity to maintain those transmission line assets


Personally, I don't see the need to transfer the assets. With the current tariff schedule, Kenya Power has the muscle to pay 15bn a year and clear the 115bn debt pile in 10 years. Any extra forex losses will be recovered in the tariff.
The asset transfer will create complications in terms of how long will they recover the 14bn forex loss on the On-lent loans since they normally recover once payment has been made. 2nd, capital gains tax implications. Kenya Power's assets are way below market value hence a revaluation and disposal can trigger a capital gains tax. Disposing off 80bn to KETRACO means a tax expense of 5 - 8bn from internally generated cash. (Correct me if I am wrong, I am not an expert at tax matters)
KaunganaDoDo
#645 Posted : Monday, September 23, 2024 3:31:45 PM
Rank: Member


Joined: 8/6/2018
Posts: 299
Ericsson wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share



\That transaction will hit a cropper,KETRACO has no capacity to maintain those transmission line assets


KETRACO curretly manages TL of worthy more than 150B....so this new assets will enhance them...though, they will also take some KPLC Transmission Planning staff
KaunganaDoDo
#646 Posted : Monday, September 23, 2024 3:33:53 PM
Rank: Member


Joined: 8/6/2018
Posts: 299
watesh wrote:
Ericsson wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share



\That transaction will hit a cropper,KETRACO has no capacity to maintain those transmission line assets


Personally, I don't see the need to transfer the assets. With the current tariff schedule, Kenya Power has the muscle to pay 15bn a year and clear the 115bn debt pile in 10 years. Any extra forex losses will be recovered in the tariff.
The asset transfer will create complications in terms of how long will they recover the 14bn forex loss on the On-lent loans since they normally recover once payment has been made. 2nd, capital gains tax implications. Kenya Power's assets are way below market value hence a revaluation and disposal can trigger a capital gains tax. Disposing off 80bn to KETRACO means a tax expense of 5 - 8bn from internally generated cash. (Correct me if I am wrong, I am not an expert at tax matters)


It creates value for KPLC shareholders. KPLC is heavy on Fixed Assets and light on current Assets. The Tax on Revaluation Gain is Ok, as long as it leaves a Net Gain.
kawi254
#647 Posted : Friday, September 27, 2024 10:43:41 AM
Rank: Member


Joined: 2/20/2015
Posts: 467
Location: Nairobi
NSE & CMA published a circular for listed companies asking them to develop corporate Calendars; deadline for 2024 corporate calendars was due by Sept 16, 2024. Hoped by now we would have KPLC fully year results release date.

KPLC will still 'surprise' us on the last business day of October synchronised with Kengen.
Ericsson
#648 Posted : Saturday, September 28, 2024 6:43:46 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,671
Location: NAIROBI
KaunganaDoDo wrote:
Ericsson wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
stocksmaster wrote:
KaunganaDoDo wrote:
HaMaina wrote:
What's the sudden excitement on KPLC about? Does anyone have any info?


Huge Dividends on the way....Upwards of 3 per share based on Financial Projections and estimates


Not really Ksh 3 dividend (they still have a huge negative working capital which they need to sort with their profits before the asset transfer to Ketraco) but most likely a dividend in the range of Ksh 0.50-1.50.This would still be decent enough to pull the share price short term (Oct-Dec 2024) towards the Ksh 4-5 range after the end of year results announcement in a months time.

Happy hunting.


working capital shall be resolved through Balance Sheet restructuring and Assets for Liability exchange with GoK...not through retained earnings


Since the exchange to be done via balance sheet restructuring will not involve money being exchanged but rather assets for liabilities, it means the end effect will be to move working capital from negative to zero....that will still need to be pushed to positive territory via retained earnings. So investors should be happy even with a Ksh 1 dividend which looks most likely and this would still push the share to Ksh 4-5 territory (dividend yield of 20-25%).

Happy Hunting


They currently are doing asset valuation...The assets are not be be exchanged at Book Value but Market Value....from the current Book Value of around 22B, this could result in Significant realized gains , which could push it towards positive areas.....1 Bob is not in line with Government's Policy of 80% Dividend Payout, which is oncourse....minimum 3/share



\That transaction will hit a cropper,KETRACO has no capacity to maintain those transmission line assets


KETRACO curretly manages TL of worthy more than 150B....so this new assets will enhance them...though, they will also take some KPLC Transmission Planning staff


When they breakdown its KPLC team that restores them.
The plan to take KPLC Transmission planning staff hit a snag;average pay in KPLC is higher than in KETRACO for engineers at the same rank
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#649 Posted : Saturday, September 28, 2024 6:45:22 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,671
Location: NAIROBI
kawi254 wrote:
NSE & CMA published a circular for listed companies asking them to develop corporate Calendars; deadline for 2024 corporate calendars was due by Sept 16, 2024. Hoped by now we would have KPLC fully year results release date.

KPLC will still 'surprise' us on the last business day of October synchronised with Kengen.

CMA is a toothless dog,they have been unable to enforce
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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