KaunganaDoDo wrote:wukan wrote:guru267 wrote:the deal wrote:Pesa Nane wrote:Ericsson wrote:Looks like FY results will be out next week at the last day of the month.
Tune in Friday 26 October 2018
Most likely no good news... KPLC is struggling... KenGen won't be spared...
Other than the GOK factor what does Kengen's performance have to do with Kenya Power considering that the KP's woes have nothing to do with demand.
Kengen annual report risks
Quote:Single Buyer Model
The Company currently sells all its generated electric energy to a sole customer namely; Kenya Power. This could have an adverse effect on KenGen’s revenues should Kenya Power’s financial health be affected adversely by the macro-economic factors.
Mitigation: The Company continues to collaborate with other stakeholders to ensure the enactment of the Energy Bill into law to allow for the entry of more players in the wholesale and retail electricity market thus giving the Company an option to sell bulk energy to multiple customers. The Energy Bill, if enacted, will also provide for the establishment of an independent system operator to ensure economic merit order of power plant dispatch is strictly followed.
From July 2017 to around February 2018 poor hydrology reduced dispatch from KenGen hydros by over 70%...hydros in the energy mix dropped from 47% to around 18% when Masinga Dam was almost being shut down...Plus KenGen has cashflow problems due to heavy receivables from KPLC...This year was a tough year for KenGen...They have huge cashflow problems arising from KPLC delays in payments
Kengen will still make a healthy profit despite the "challenging operating environment". Not like the usual suapects that blame rate caps, long electioneering, exchange rates, rising fuel costs and other reasons.
Life is short. Live passionately.