Wazua
»
Investor
»
Stocks
»
Kenya Power HY 2019
Rank: Member Joined: 8/6/2018 Posts: 299
|
VituVingiSana wrote:KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:wukan wrote:The tariff hike has once again been rejected. Stay away from GoK controlled firms and set up a helpline to talk you down anytime you feel like investing in one.  Quote:Energy Secretary Charles Keter has rejected Kenya Power’s bid to increase electricity tariffs, a move than now offers relief to consumers but deals a blow to the utility company that was betting on new prices to reverse profit drops. The firm has hinged the recovery of its earnings on the new tariffs after issuing a profit warning for the second year in a row. “We will not increase any tariff, what we are going to do is to work on methods of mitigating that, but as you are aware we have new, cheaper power plants like Turkana wind,” Mr Keter said. “A company can issue profit warning depending on its financial position. As a government we are okay with it (profit warning),” he said. https://www.businessdail...88002-ojoo1z/index.html
Actually the tariff review hasn't been declined....its an ongoing process that will result in either tariff adjustment upward for certain customer category or direct transfer of resources from National treasury to kplc The latter is interesting. How does it work? The expected tariff jump was as a result of increased power purchase costs expected...Olkaria V will need 10B in new revenues per year, ethiopia almost similar amount....not to add many new solars projects...ANYWAY, the government letter of support given to generation firms gives a leeway of GOK payment to generation firms incase kplc is unable to pay due to lack of revenue provision in the tariff....like the Government paid 7B to lake turkana wind power So if it only kicks in if and when KPLC defaults, how does it benefit KPLC shareholders? Was the payment of 7bn to LTWP made by GoK on behalf of KPLC or KETRACO? How could KPLC off-take power when the T-line was not ready/connected? It means the Government will, instead of having the additional Power purchase costs in tariffs, pay them directly from national treasury....KPLC will not be obligated to pay the power purchase costs ....just like the government has been considering to pay off the thermal generators, from the exchequer ....the payment was sent by government to kplc to pay LTWP....its KPLC that received the money and paid LTWP...
|
|
|
Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
|
KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:wukan wrote:The tariff hike has once again been rejected. Stay away from GoK controlled firms and set up a helpline to talk you down anytime you feel like investing in one. Quote:Energy Secretary Charles Keter has rejected Kenya Power’s bid to increase electricity tariffs, a move than now offers relief to consumers but deals a blow to the utility company that was betting on new prices to reverse profit drops. The firm has hinged the recovery of its earnings on the new tariffs after issuing a profit warning for the second year in a row. “We will not increase any tariff, what we are going to do is to work on methods of mitigating that, but as you are aware we have new, cheaper power plants like Turkana wind,” Mr Keter said. “A company can issue profit warning depending on its financial position. As a government we are okay with it (profit warning),” he said. https://www.businessdail...88002-ojoo1z/index.html
Actually the tariff review hasn't been declined....its an ongoing process that will result in either tariff adjustment upward for certain customer category or direct transfer of resources from National treasury to kplc The latter is interesting. How does it work? The expected tariff jump was as a result of increased power purchase costs expected...Olkaria V will need 10B in new revenues per year, ethiopia almost similar amount....not to add many new solars projects...ANYWAY, the government letter of support given to generation firms gives a leeway of GOK payment to generation firms incase kplc is unable to pay due to lack of revenue provision in the tariff....like the Government paid 7B to lake turkana wind power So if it only kicks in if and when KPLC defaults, how does it benefit KPLC shareholders? Was the payment of 7bn to LTWP made by GoK on behalf of KPLC or KETRACO? How could KPLC off-take power when the T-line was not ready/connected? It means the Government will, instead of having the additional Power purchase costs in tariffs, pay them directly from national treasury....KPLC will not be obligated to pay the power purchase costs ....just like the government has been considering to pay off the thermal generators, from the exchequer ....the payment was sent by government to kplc to pay LTWP....its KPLC that received the money and paid LTWP... Are you suggesting that there is a chance that this monkey might bounce back and start paying dividends? Dumb money becomes dumb only when it listens to smart money
|
|
|
Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
|
KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:VituVingiSana wrote:KaunganaDoDo wrote:wukan wrote:The tariff hike has once again been rejected. Stay away from GoK controlled firms and set up a helpline to talk you down anytime you feel like investing in one. Quote:Energy Secretary Charles Keter has rejected Kenya Power’s bid to increase electricity tariffs, a move than now offers relief to consumers but deals a blow to the utility company that was betting on new prices to reverse profit drops. The firm has hinged the recovery of its earnings on the new tariffs after issuing a profit warning for the second year in a row. “We will not increase any tariff, what we are going to do is to work on methods of mitigating that, but as you are aware we have new, cheaper power plants like Turkana wind,” Mr Keter said. “A company can issue profit warning depending on its financial position. As a government we are okay with it (profit warning),” he said. https://www.businessdail...88002-ojoo1z/index.html
Actually the tariff review hasn't been declined....its an ongoing process that will result in either tariff adjustment upward for certain customer category or direct transfer of resources from National treasury to kplc The latter is interesting. How does it work? The expected tariff jump was as a result of increased power purchase costs expected...Olkaria V will need 10B in new revenues per year, ethiopia almost similar amount....not to add many new solars projects...ANYWAY, the government letter of support given to generation firms gives a leeway of GOK payment to generation firms incase kplc is unable to pay due to lack of revenue provision in the tariff....like the Government paid 7B to lake turkana wind power So if it only kicks in if and when KPLC defaults, how does it benefit KPLC shareholders? Was the payment of 7bn to LTWP made by GoK on behalf of KPLC or KETRACO? How could KPLC off-take power when the T-line was not ready/connected? It means the Government will, instead of having the additional Power purchase costs in tariffs, pay them directly from national treasury....KPLC will not be obligated to pay the power purchase costs ....just like the government has been considering to pay off the thermal generators, from the exchequer ....the payment was sent by government to kplc to pay LTWP....its KPLC that received the money and paid LTWP... Did KPLC get to keep any of it? Was it just a pass-through since KETRACO didn't connect the T-Line on time? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
|
|
|
Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
|
Stock setting new low daily (Sh2.80 currently today). Looks like the post results shock could take it further into 2 bob but sub-2 would require a major price dislodgment event.
|
|
|
Rank: Elder Joined: 7/22/2009 Posts: 7,838
|
Kenya Power is going to report a loss as they clean their books. But next year they will be back to profitability. After the announcement, there will be so much blood on the street and it will definitely be a time to buy. Things are improving at Kenya Power but the coming results must take a major hit!!! Waiting for the blood... Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
|
|
|
Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
|
MaichBlack wrote:Kenya Power is going to report a loss as they clean their books. But next year they will be back to profitability.
After the announcement, there will be so much blood on the street and it will definitely be a time to buy. Things are improving at Kenya Power but the coming results must take a major hit!!!
Waiting for the blood... I hope it's so bad it goes sub 2 shillings.
|
|
|
Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
|
MaichBlack wrote:Kenya Power is going to report a loss as they clean their books. But next year they will be back to profitability.
After the announcement, there will be so much blood on the street and it will definitely be a time to buy. Things are improving at Kenya Power but the coming results must take a major hit!!!
Waiting for the blood... separate boys from men. Towards the goal of financial freedom
|
|
|
Rank: Member Joined: 11/17/2018 Posts: 173 Location: Mars
|
When is Mr. Profit Warning's appointment going to be confirmed?
|
|
|
Rank: Veteran Joined: 4/4/2016 Posts: 2,016 Location: Kitale
|
Extraterrestrial wrote:When is Mr. Profit Warning's appointment going to be confirmed? @kaunganadodo is best placed to inform us. Towards the goal of financial freedom
|
|
|
Rank: Member Joined: 2/20/2015 Posts: 468 Location: Nairobi
|
Ebenyo wrote:Extraterrestrial wrote:When is Mr. Profit Warning's appointment going to be confirmed? @kaunganadodo is best placed to inform us. Bad news always released after close of business last working day before a long weekend....so i am guessing on Friday 18th October.
|
|
|
Wazua
»
Investor
»
Stocks
»
Kenya Power HY 2019
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.
|