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Strong Umeme H1 2013 Earnings
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Umeme H1 2013 Earnings. Customer numbers up 11% y/y, Revenues up by 17.6% y/y on a 12% increase in electricity units sold. PAT up 53% y/y.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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mwekez@ji wrote:Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
The risks mentioned above are faced by every company...its just a mere strategy to calm down the masses who might think Umeme is profiteering instead of providing them with electricity.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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the deal wrote:mwekez@ji wrote:Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
The risks mentioned above are faced by every company...its just a mere strategy to calm down the masses who might think Umeme is profiteering instead of providing them with electricity. Comment on the highligted above (in bold) ^
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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mwekez@ji wrote:the deal wrote:mwekez@ji wrote:Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
The risks mentioned above are faced by every company...its just a mere strategy to calm down the masses who might think Umeme is profiteering instead of providing them with electricity. Comment on the highligted above (in bold) ^ Nothing serious to affect the company's operations or profitability.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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the deal wrote:mwekez@ji wrote:the deal wrote:mwekez@ji wrote:Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
The risks mentioned above are faced by every company...its just a mere strategy to calm down the masses who might think Umeme is profiteering instead of providing them with electricity. Comment on the highligted above (in bold) ^ Nothing serious to affect the company's operations or profitability. What is the amendment No. 4 and what are the options available to Umeme?
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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mwekez@ji wrote:the deal wrote:mwekez@ji wrote:the deal wrote:mwekez@ji wrote:Cautionary company commentary
“Umeme continues to face certain risks and uncertainties that may affect its financial performance and ability to meet it regulatory targets. These include credit risk, liquidity risk, foreign exchange risk and regulatory risks. In this connection, on the 5th August 2013, the Electricity Regulatory Authority informed the company of the implementation of Amendment No. 4 to its License for the Supply of Electricity. In response, the company is considering its options in response to this communication”
“The company is in the process of negotiating a long term financing package of US$ 170m to partly fund its projected capital investment program of US$ 440m for the period 2013 to 2018.”
The risks mentioned above are faced by every company...its just a mere strategy to calm down the masses who might think Umeme is profiteering instead of providing them with electricity. Comment on the highligted above (in bold) ^ Nothing serious to affect the company's operations or profitability. What is the amendment No. 4 and what are the options available to Umeme? Good question. What is this Amendment No. 4? 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: 18,124 Location: Nairobi
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[quote=the deal]CBK pension scheme buys stake in Umeme http://www.theeastafrica...2/-/4f99v2/-/index.html[/quote] The same chaps who are in charge of the KES going from 82 to 107 to 84 within 3 months... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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Better investment than the Kenya Power thing you used to hype...  I wonder what happened to your love for Kenya Power....
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Rank: Chief Joined: 1/3/2007 Posts: 18,124 Location: Nairobi
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the deal wrote:Better investment than the Kenya Power thing you used to hype... I wonder what happened to your love for Kenya Power.... As I said, I have learnt an expensive lesson. Do not invest in firms controlled by GoK. Period. I am out of KPLC & KQ. And happy that I bailed in time. http://www.wazua.co.ke/f...sts&t=23358&p=2 See#40 Now, back to the core question. What is Amendment No. 4? 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: 18,124 Location: Nairobi
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the deal wrote:Better investment than the Kenya Power thing you used to hype... I wonder what happened to your love for Kenya Power.... Here: http://www.wazua.co.ke/f...spx?g=posts&t=24643
I admitted my mistakes especially with KPLC. Unlike you, I have seen many ups & downs. I hope I have learnt some lessons.  ... Don't repeat my mistakes! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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VituVingiSana wrote:the deal wrote:Better investment than the Kenya Power thing you used to hype... I wonder what happened to your love for Kenya Power.... Here: http://www.wazua.co.ke/f...spx?g=posts&t=24643
I admitted my mistakes especially with KPLC. Unlike you, I have seen many ups & downs. I hope I have learnt some lessons. ... Don't repeat my mistakes!
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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VituVingiSana wrote:the deal wrote:Better investment than the Kenya Power thing you used to hype... I wonder what happened to your love for Kenya Power.... Here: http://www.wazua.co.ke/f...spx?g=posts&t=24643
I admitted my mistakes especially with KPLC. Unlike you, I have seen many ups & downs. I hope I have learnt some lessons. ... Don't repeat my mistakes!
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Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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@VVS Naah I kiss frogs too...the amendment above is about the cash Umeme was getting for surplus sales...Umeme will no longer receive this offcourse Umeme is against it cos the company was using the cash to upgrade its network...the cash is too small to have a material impact though... On Umeme... 1. Umeme is run by Actis 2. Look at the low elec penetration in UG...huge untaped market! 3. Strong regulation in UG is helping Umeme stay on its toes and helping it deliver for both UG & Shareholders. I tend to think Kenya made a mistake on giving tariff hikes to Kenya Power like that without setting perfomance targets for the company. Tariff hikes didnt help Kenya Power...rather the company became addicted to them...offcourse it wasnt sustainable...look now! 4. I know one day Actis will exit Umeme...depending on who buys out Actis...I might stay put...if its UG Gava I will exit. 5. Key lesson I have learned government regulation is now a key determinant in making an investment decision. 6. Thus I'm worried about KK...we might never see the glory days again! So far so good...as far as Umeme is concerned 
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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the deal wrote:@VVS Naah I kiss frogs too...the amendment above is about the cash Umeme was getting for surplus sales...Umeme will no longer receive this offcourse Umeme is against it cos the company was using the cash to upgrade its network...the cash is too small to have a material impact though... On Umeme... 1. Umeme is run by Actis 2. Look at the low elec penetration in UG...huge untaped market! 3. Strong regulation in UG is helping Umeme stay on its toes and helping it deliver for both UG & Shareholders. I tend to think Kenya made a mistake on giving tariff hikes to Kenya Power like that without setting perfomance targets for the company. Tariff hikes didnt help Kenya Power...rather the company became addicted to them...offcourse it wasnt sustainable...look now! 4. I know one day Actis will exit Umeme...depending on who buys out Actis...I might stay put...if its UG Gava I will exit. 5. Key lesson I have learned government regulation is now a key determinant in making an investment decision. 6. Thus I'm worried about KK...we might never see the glory days again! So far so good...as far as Umeme is concerned @deal all the best in monitoring this investment eventually the UG govt will do the same thing that GoK did to kenya power, public outcry and you get more regulation. I don't like the idea of private capital funding public infrastructure it never works well in Africa. Makes no sense to spend your private equity while the govts are busy wasting taxes on useless expenditures. Dealing with african govt's is like dealing with a conman you never know the exact moment until you get well and truly shafted
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