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KPLC H1 2011/2012 profit up by 10.6%
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Aguytrying
#11 Posted : Saturday, February 25, 2012 8:50:12 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
FUNKY wrote:
http://www.businessdailyafrica.com/Corporate+News/Kenya+Power+reports+Sh2+28b+after+tax+profit/-/539550/1334342/-/b0xmmiz/-/index.html

However, the lower dividend was also a result of a higher number of shares that resulted from a bonus share issue given in the course of last year.

Shareholders got one new share for every eight shares held as at June 2011. This resulted in the creation of about 217 million shares bonus shares.

yeah, you're right. But were far from satisfied with KP.
The investor's chief problem - and even his worst enemy - is likely to be himself
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the deal
#12 Posted : Saturday, February 25, 2012 9:31:01 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Seriously you expected Kenya Power to perform well when the economy is struggling? the perfomance of KP tend to track the economy..
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guru267
#13 Posted : Saturday, February 25, 2012 9:42:31 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
FUNKY wrote:
However, the lower dividend was also a result of a higher number of shares that resulted from a bonus share issue given in the course of last year.Shareholders got one new share for every eight shares held as at June 2011. This resulted in the creation of about 217 million shares bonus shares.


It is unwise for companies to issue bonus shares that will result in a lower nominal EPS and DPS in following years..

Just take a look at JUB and NIC.. They issue 1:10 bonus shares every year and then ensure profit growth exceeds 10% so as not not announce a lower EPS..

JUB always increases the DPS while NIC leaves it constant making sure shareholders get more..

If one bought 100 shares of NIC In 2009 a 50cents DPS would have gotten him 50bob plus 10 bonus shares (1:10bonus)

In 2010 the same investor would have 110shares so the 50cents DPS now gives 55bob and 11 bonus shares (1:10bonus)

in 2011 the same investor would have 121 shares so the 50cents dividend now gives 60.5 bob and 12 bonus shares (1:10 bonus)


and so on...
Mark 12:29
Deuteronomy 4:16
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  | | Edit by user: Saturday, February 25, 2012 9:43 AM | Reason: Not specified
guru267
#14 Posted : Saturday, February 25, 2012 9:46:58 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:
Seriously you expected Kenya Power to perform well when the economy is struggling? the perfomance of KP tend to track the economy..


The performance is satisfactory but the management's dividend policy is ill informed..

And from the looks of the banks and industrials that have reported thus far it looks like 2011 was a bumper harvest year..
Mark 12:29
Deuteronomy 4:16
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the deal
#15 Posted : Saturday, February 25, 2012 10:00:13 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
guru267 wrote:
the deal wrote:
Seriously you expected Kenya Power to perform well when the economy is struggling? the perfomance of KP tend to track the economy..


The performance is satisfactory but the management's dividend policy is ill informed..

And from the looks of the banks and industrials that have reported thus far it looks like 2011 was a bumper harvest year..

Don't rush to make conclusions like that apart from BAT (exporter+weak KES) which other industrial reported good numbers? both Bamburi and EABL reported tepid results...on banks CBR was hiked in which month? look at forex income component of this results...Did u look at the NIC bank numbers? becareful what you call good it might be bad after all and don't compare banks to industrials theyre two different industries.
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guru267
#16 Posted : Saturday, February 25, 2012 10:32:05 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:
on banks CBR was hiked in which month? look at forex income component of this results...Did u look at the NIC bank numbers? becareful what you call good it might be bad after all


The CBR was hiked in August and yet the banks were still making profit all through.. NPLs even went down during this period.. What was wrong with NIC¿¿ Ive looked through the results and they're awesome and I think Mr market is agreeing with me.. A rights issue to finance expansion was an awesome idea..

the deal wrote:
and don't compare banks to industrials theyre two different industries.


I wasnt comparing anyone..
These are two major components of the kenyan economy that have ALL announced double digit growth in Earnings so far.. I was just pointing that out...
Mark 12:29
Deuteronomy 4:16
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  | | Edit by user: Saturday, February 25, 2012 10:34 AM | Reason: Not specified
the deal
#17 Posted : Saturday, February 25, 2012 11:29:18 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
guru267 wrote:
the deal wrote:
on banks CBR was hiked in which month? look at forex income component of this results...Did u look at the NIC bank numbers? becareful what you call good it might be bad after all


The CBR was hiked in August and yet the banks were still making profit all through.. NPLs even went down during this period.. What was wrong with NIC¿¿ Ive looked through the results and they're awesome and I think Mr market is agreeing with me.. A rights issue to finance expansion was an awesome idea..

the deal wrote:
and don't compare banks to industrials theyre two different industries.


I wasnt comparing anyone..
These are two major components of the kenyan economy that have ALL announced double digit growth in Earnings so far.. I was just pointing
that out...

I told you in January NIC will do a rights issue...and they're doing it...you are the Guru those results where awesome lets leave it there!!!
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guru267
#18 Posted : Saturday, February 25, 2012 12:06:05 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:

I told you in January NIC will do a rights issue...and they're doing it.


@the deal why are you dying to be right.¿¿ the rights issue is to finance expansion into Uganda not to shore up core capital like you had said..

Mark 12:29
Deuteronomy 4:16
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QW25091985
#19 Posted : Saturday, February 25, 2012 1:47:07 PM
Rank: User

Joined: 1/24/2012
Posts: 1,675
Location: In Da Hood
guru267 wrote:
the deal wrote:

I told you in January NIC will do a rights issue...and they're doing it.


@the deal why are you dying to be right.¿¿ the rights issue is to finance expansion into Uganda not to shore up core capital like you had said..




Laughing out loudly Laughing out loudly Laughing out loudly Laughing out loudly . Nice one. Somebody wants to be right.
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Ericsson
#20 Posted : Saturday, February 25, 2012 10:16:28 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,811
Location: NAIROBI
The amount of money given out as dividend is lower compared to last year inspite of the growth in profits.
If you calculate the DPS by the issued shares as of last year and calculate the issued shares after the 1:8 bonus issue by the DPS you will realise that
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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