Wazua
»
Investor
»
Stocks
»
Kenya Power - what's the latest?
Rank: Member Joined: 9/26/2006 Posts: 404 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
|
|
|
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
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 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
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 969 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)
|
|
|
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
|
|
|
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.
|
|
|
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.
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 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
|
|
|
Rank: Elder Joined: 12/4/2009 Posts: 10,684 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
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Power - what's the latest?
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.
|