@Kaigangio,@ kanobi;

The installed capacity is 35MW...full-stop! Not 35MW per hour,or per year!!

Electricity is sold in kWh. 35MW is 35,000kW

Run the generator for one hour and you have supplied 35,000kWh of ENERGY

Run it for a year (non-stop) and you have supplied 365days x 24hours/day x 35,000Kwh = 306,600,000kWh of ENERGY.

MSC has committed to 85% availability,meaning 85% of this theoretical maximum = 260,610,000kWh of ENERGY

KPLC has committed to pay US$0.06 per kWh = sh2.5 per kWh

This gives sh625m pa

Finally,KPLC buys power by load-sharing...giving preference to the cheapest sources (hydro,geothermo,sugar). We have a 15% excess supply .

Thus best that MAC can look forward to is 85% of sh625m = sh530m

Knock off the sh300m finance cost and you are left with sh230m...or just 10cts in additional EPS

Not so enticing now!!!

====

Amazing how the picture changes when you do the figures accurately


Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)

@Eddie,

Carbon credit:

Will earn 120M every year.There are many companies that are listed and never made that kind of money.Let's say,if it's a hobby,it's a rich hobby.

Power:

It's not a pilot project.It's rolling and 25 MW is minimum on-peak export .The actual off peak can go as high as 34Mw.Put that on pen at 6 US cents and let's see what you come up with.

Cane price:

2560 is low compared to what other smaller and less efficient plants like West Kenya are paying (2850).To my best of knowledge,West Kenya is still up and making profit.


God gives,mugikuyu takes.

@mukiha
perfect explanation...only that again the conversion of 6 US cents to Kshs comes to Ksh 4.80 per KWH...confirming your earlier Ksh 929m pa revenue guesstimate...looks appealing once again?...before adding the methane reduction credits of Ksh 120m pa...

Playing the stock market without insider info...is like buying a cow in the moonlight.

I don't understand the sceptiscm,heres my workings

Electricity - Sh. 1,000,000,000

Ethanol - Sh. 670,000,000

Carbon credits Sh. 120,000,000

Total added revenues Sh. 1,790,000,000

No increase in the cost of cane as same cane is being used (60/2500 <1%),same staff and management structure.

Additional capital costs and overheads I would say 35-40% = 716,000,000

Giving you added profit of Sh. 1,000,000,000. Howz that for some good investment


I guess if you can't win with facts,you can always pen bile-laced,xenophobic rants to distract everyone.

@Obi 1 Kanobi;

Agreed,any additional income stream is welcome!

Now,a different matter: Compare 2008 to 2007 figures.

2007 GP = 3.6b
2008 GP = 4.3b

Increase = 19%

2007 PBT = 1.9b
2008 PBT = 1.6b

Decrese = 17%

GP increases but PBT decreases...makes you go Hmmmm!!


Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow)