mwanahisa wrote:I will be surprised if at all KPLC gives bonus shares with these results. This is due to the impending conversion of preference shares and the rights issue thereafter. That I believe is already too much for a company that has demonstrated how slow it can be with such changes!
All the same, I expect good results but not in the mould of the fantastic ones being posted by banks. Electricity demand (and indeed supply) does not and has not increased that dramatically. A doubling of KPLC's H1 2009-10 profits would yield 3.746 B PAT for the full year, which would be a 16% increase.
Considering that there was rationing in H1 2009-10, the more likely scenario is H2 2010 contributing 55%+ of Full Year profits (like in 2008-09) which would bring in PAT at 4.16 B - 29% increase. This would result to an EPS of a whopping Kshs 52.60 and a dividend of Kshs 10 or better.
It's of course possible for them to do better (e.g. by H2 profits coming in at 60% of total)but I prefer to err on the side of caution. Remember that part of the reason for the big increase in profits for 2008-09 was the result of an increase in tariffs.
@mwanahisa i would like to disagree with you on a couple of things....
First of all if you double KPLC's H1 earnings you'll get 4billion net profit...
Secondly i watched another immediately after they announced last years full results and everyone was saying it was because of a rise in tariffs. Then i ask How they managed to pull off a 30% increase in H1 2010... The answer being cost efficient and rising revenues with economic growth improvement..
Thirdly i expect their
other comprehensive income to grow substantially...
So i expect a 6billion PBT come october
Mark 12:29
Deuteronomy 4:16