Par Value: 2.50/-
Closing Price: 4.53
Total Shares Issued: 6243873667.00
Market Capitalization: 28,284,747,712
EPS: 2.79
PE: 1.624
KenGen PLC HY 2020 results through 31st December 2019 vs. 31st December 2018
KenGen HY Earnings through 31st December 2020 versus through December 2019
HY Revenue 21.801b versus 22.361b
HY Revenue net of reimbursable expenses 20.567b versus 18.914b +9%
HY Depreciation and Amortisation [5.738b] [5.708b]
HY Steam Costs [1.527b] versus [1.661b]
HY Operating Expenses [5.825b] versus [5.569b]
HY Operating Profit 7.275b versus 6.700b
HY Finance Income 829m versus 723m
HY Finance Costs [1.232b] versus [1.145b]
HY Profit Before Tax 6.872b versus 6.278b
HY Income Tax Expense [1.817b] versus +1.892b
HY Profit After Tax 5.055b versus 8.170b
HY EPS 0.77 versus 1.24
Balance as at 31st December 10.793b versus 5.229b
Commentary
Energy Unit Sales increased by 5% for the half Year ended 31st Dec 2020
Peak Electricity Demand 1976 MW during the period versus 1882 MW
Energy Sales from Hydro increased to 51% versus 40% [4.807b versus 4.474b]
Thermal generation declined from 6% to 2%
Total Revenue declined by 3%
Geothermal Revenue increased by 14% [14.056b versus 12.280b]
Conclusions
Solid results however There was no repeat of the Income Tax benefit
HY Income Tax Expense [1.817b] versus +1.892b
Full Year Results through 30th June 2020
FY Total Revenue 44.110491b versus 45.965646b
FY Electricity Revenue 33.783190b versus 29.796983b
FY Steam Revenue 5.549684b versus 5.871921b
FY Fuel Charge 4.155499b versus 10.111516b
FY Revenue less reimbursable expenses 39.822201b versus 35.774084b
FY Other Gains net 6.382970b versus 3.179185b
FY Operating Income 46.677697b versus 39.572091b
Expenses
FY Depreciation and Amortization [12.029561b] versus [10.360330b]
FY Employee Expenses [7.082496b] versus [6.800376b]
FY Steam Costs [3.160582b] versus [3.357126b]
FY Plant Operation and maintenance expenses [1.503237b] versus [1.512278b]
FY Other Expenses [2.298971b] versus [2.257402b]
FY Operating Profit 20.602850b versus 15.284579b
FY Finance Income 1.431118b versus 1.423062b
FY Finance Costs [8.244181b] versus [5.053924b]
FY Profit before Income Tax 13.789787b versus 11.653717b +18.3%
FY Profit for the Year 18.377093b versus 7.884335b +133.1%
FY EPS 2.79 versus 1.20
FY Dividend 0.30 versus 0.25 +20%
Cash and Bank Balances 5.315991b versus 9.175330b
Commentary
KenGen recorded a 13.4% growth in electricity revenue
Conclusions
Well Those were muscular Earnings
HY Revenue 22.361b vs. 22.185b +0.793%
HY Reimbursable expenses (fuel and water) [3.447b] vs. [4.145b] -16.840%
HY Revenue net of reimbursable expenses 18.914b vs. 18.040b +4.845%
HY Other income 479m vs. 211m +127.014%
HY Other net gains 246m vs. 158m +55.696%
HY Depreciation and amortization [5.708b] vs. [5.133b] +11.202%
HY Steam costs [1.661b] vs. [1.667b] -0.360%
HY Operating expenses [5.569b] vs. [4.980b] +11.827%
HY Operating profit 6.700b vs. 6.629b +1.071%
HY Finance income 723m vs. 733m -1.364%
HY Finance costs [1.145b] vs. [1.340b] -14.552%
HY PBT 6.278b vs. 6.022b +4.251%
HY Income tax expense 1.892b vs. [1.898b] +199.684%
HY PAT 8.170b vs. 4.124b +98.109%
HY EPS 1.24 vs. 0.63 +96.825%
Cash and cash equivalents balance at end of period 5.229b vs. 8.763b -40.329%
Basis of Preparations
The condensed financial statements for the six months period ended December 31, 2019 has been prepared in accordance with the International Accounting Standard 34 (lAS 34) Interim Financial Reporting. The same accounting policies, presentation and methods of computation have been followed in these condensed financial statements as were applied in the companys unaudited financial statements for the year ended June 30, 2019 and the audited financial statements for the year ending 30 June 2018
Business Commentary for the six months ended 31 December 2019
Revenue net of reimbursables increased by 4.8% from KShs. 18,040 million in 2018 to KShs. 18,914 million for the six months ended 31st December 2019. This growth was buoyed by a 6.4% increase in electricity revenue from KShs. 15,040 million earned in 2018 to KShs 16,006 million for the six months ended 31st December 2019 following completion of 165MW Olkaria V geothermal power plant and 127% growth in other income from KShs. 211 million in 2018 to KShs 479 million for the six months ended 31st December 2019 following rollout of our business diversification strategy that has seen the Company clinch two drilling contracts in Ethiopia
Depreciation and amortization increased by 11.2% from KShs 5,133 million to Kshs. 5,708 million attributable to depreciation expense for Olkaria V and Right of use assets following adoption of IFRS 16. Operating profit remained flat, gaining marginally by 1.1% from KShs. 6,629 million to KShs. 6,700 million. Profit before tax rose by 4.3% from KShs 6,022 million to KShs. 6,278 million impacted by lower finance costs following final repayment of the infrastructure bond.
Profit After Tax increased by 98% from KShs 4,124 million to KShs. 8,170 million for the six months to 31st December 2019. The increase is as a result of capital allowances arising from the completion of Olkaria V 165MW. This resulted into a tax credit of KShs 1,892 million compared to a tax expense of KShs. 1,898 million in the previous period.
Net cash and cash equivalent declined from KShs. 8,763 million to KShs. 5,229 million attributable to lower disbursement from borrowings of KShs 1,900 million following completion of Olkaria V and payment of dividends of KShs 1,846 million.
Our Good to Great (G2G) Strategy
We continue to focus on our revamped strategy which is to grow our core business of power generation amid an increasing competitive market. We also continue safeguarding and creating value for our stakeholders as well as providing a low cost tariff to our economy in support of the Governments Big Four Agenda. In addition, we are pursuing best operational practices and our power plants continue to deliver the lowest priced energy.
Outlook
We are continuing with our geothermal led growth strategy. We completed Olkaria V 165MW geothermal power plant in November 2019, construction of 83MW Olkaria 1 Unit 6 geothermal power plant is ongoing. We are also driving our business diversification strategy. We have ongoing geothermal drilling and consultancy services projects in Ethiopia and Kenya. These initiatives are expected to have positive contribution to our future performance.
Dividend
The Board of Directors does not recommend an interim dividend for the period ended 31 December 2019. The Board of Directors shall make a recommendation regarding any final dividend for the year ended 30 June 2019 once the Audit of the financial statements for the said period is completed following the appointment of the Auditor General.
Appreciation
We acknowledge with appreciation the support we continue receiving from the Government and other stakeholders in our endeavour to deliver safe, clean, reliable electricity to the economy while optimizing stakeholder value.
By Order of the Board
REBECCA MIANO (MRS). MBS MANAGING DIRECTOR & CEO
27 February 2020
Conclusions
The increase is as a result of capital allowances arising from the completion of Olkaria V 165MW.
This resulted into a tax credit of KShs 1,892 million compared to a tax expense of KShs. 1,898 million in the previous period.
That was a Big Assist.
KenGen PLC HY 2019 results through 31st December 2018 vs. 31st December 2017
HY Revenue 22.185b vs. 22.323b -0.618%
HY Revenue less reimbursable expenses 18.040b vs. 17.981b +0.328%
HY Other income 211m vs. 125m +68.800%
HY Depreciation and amortization [5.133b] vs. [5.194b] -1.174%
HY Operating expenses [4.980b] vs. [4.648b] +7.143%
HY Steam costs [1.667b] vs. [1.793b] -7.027%
HY Operating profit 7.120b vs. 7.458b -4.532%
HY Finance income 242m vs. 251m -3.586%
HY Profit before tax 6.022b vs. 6.081b -0.970%
HY PAT 4.124b vs. 4.095b +0.708%
HY EPS 0.63 vs. 0.62 +1.613%
Cash and cash equivalents balance at 31st December 8.763b vs. 701m +1,150.071%
No interim dividend
Company Commentary
Electricity Unit Sales grew by 16% from 3,825 GWh to 4,451GWh
Electricity generated from hydro plants +53% in the period under review
Revenue
Hydro 4.408b versus 4.097b
Geothermal 8.583b versus 8.528b
Wind 1.800b versus 1.729b
Thermal 249m
Conclusions
Big Turn Around in the Cash and cash equivalents position +1,150%
PE Ratio is 5.4 which is at least a 50% discount to Fair Value which means the Price should be at least at 9.72.
Rebecca Miano is displaying a very safe pair of hands and that too is deserving of a further premium.
I think the undervaluation is plain egregious.
KenGen PLC FY 2018 Results through 30th June 2018 vs. 30th June 2017
FY Electricity revenue 29.286b vs. 29.007b +0.962%
FY Steam revenue 6.222b vs. 5.189b +19.907%
FY Fuel charge 9.623b vs. 9.069b +6.109%
FY Revenue 45.290b vs. 43.432b +4.278%
FY Reimbursable expenses (Fuel and water costs) [9.406b] vs. [8.979b] +4.756%
FY Revenue less reimbursable expenses 35.884b vs. 34.453b +4.153%
FY Other income 275m vs. 553m -50.271%
FY Depreciation and amortization [10.148b] vs. [9.244b] +9.779%
FY Expenses [9.970b] vs. [9.764b] +2.110%
FY Steam costs [3.549b] vs. [2.796b] +26.931%
FY Operating profit 11.442b vs. 13.545b -15.526%
FY Finance income 3.341b vs. 1.333b +150.638%
FY PBT 11.746b vs. 11.461b 2.487%
FY Income tax expense [3.855b] vs. [2.455b] +57.026%
FY PAT 7.891b vs. 9.006b -12.381%
Basic and diluted EPS 1.20 vs. 1.37 -12.409%
Dividend per share 0.40 vs.
Total Assets 379.353b vs. 376.730b +0.696%
Total equity 190.104b vs. 182.836b +3.975%
All set at KenGens Investor Briefing for the official release of financial results for the year ended 30th June 2018. @rebecca_miano
https://twitter.com/rebecca_miano/status/1055675677800837120
Our capacity growth is focused on renewables. KenGenResults2018. @KenGenKenya
https://twitter.com/KenGenKenya/status/1055699832860524544
Debt profile as at 30th June 2018. We are focused on affordable and concessionary borrowing. KenGenResults2018
https://twitter.com/KenGenKenya/status/1055699735166812166
.@KenGenKenya #KenGenResults2018 key Financial data average cost of debt is 3.10%
https://twitter.com/alykhansatchu/status/1055699284711129088
Tax expense for the year was Kshs 3,855 million compared to Kshs 2,455 million the previous year. @KenGenKenya
https://twitter.com/KenGenKenya/status/1055695811651231744
The prior years tax expense was lower largely due to effect of tax incentive (investment deduction) granted on commissioning of new geothermal wellhead plants.
Were looking into regional expansion, with the power transmission line invested 1,100km (Kenya_Ethiopia) 127km (Kenya_Uganda) 94km (Kenya_Tanzania) and 400kv planned transmission.#KenGenResults2018
https://twitter.com/RichFrontiers/status/1055695013575868417
Electricity revenue from geothermal power plants increased by 6% from Ksh16.1Bn in the previous year to Ksh17.1bn. @KenGenKenya #KenGen2018Results
https://twitter.com/RichTvAfrica/status/1055694928087605248
KenGen Financial highlights In a nutshell. #KenGenResults2018
https://twitter.com/alekey_isoe/status/1055694044893007872
Conclusions
A Year on Year Revenue Gain of 4.277% in what was a period that included not one Election but 2 and a drought is singularly a positive outcome.
Finance Income +150.63% They are managing their balance sheet more effectively.
Energy Sales +6.00% to 7,989 Gwh What was interesting here is that with regional Interconnections and with a possible switch from a diesel powered SGR to an electric one The energy curve might will steepen and accelerate.
By Ending the dividend drought KenGen is sending a positive Signal and its loud and clear. Rebecca spoke of a 33% Dividend Pay Out Strategy.
a Trailing PE of 6.125 leaves plenty of scope to the upside for the share price.
Results for the 6 months period ended 31st December 2017
FY Electricity revenue 29.286b vs. 29.007b +0.962%
FY Steam revenue 6.222b vs. 5.189b +19.907%
FY Fuel charge 9.623b vs. 9.069b +6.109%
FY Revenue 45.290b vs. 43.432b +4.278%
FY Reimbursable expenses (Fuel and water costs) [9.406b] vs. [8.979b] +4.756%
FY Revenue less reimbursable expenses 35.884b vs. 34.453b +4.153%
FY Other income 275m vs. 553m -50.271%
FY Depreciation and amortization [10.148b] vs. [9.244b] +9.779%
FY Expenses [9.970b] vs. [9.764b] +2.110%
FY Steam costs [3.549b] vs. [2.796b] +26.931%
FY Operating profit 11.442b vs. 13.545b -15.526%
FY Finance income 3.341b vs. 1.333b +150.638%
FY PBT 11.746b vs. 11.461b 2.487%
FY Income tax expense [3.855b] vs. [2.455b] +57.026%
FY PAT 7.891b vs. 9.006b -12.381%
Basic and diluted EPS 1.20 vs. 1.37 -12.409%
Dividend per share 0.40 vs.
Total Assets 379.353b vs. 376.730b +0.696%
Total equity 190.104b vs. 182.836b +3.975%
All set at KenGens Investor Briefing for the official release of financial results for the year ended 30th June 2018. @rebecca_miano
https://twitter.com/rebecca_miano/status/1055675677800837120
Our capacity growth is focused on renewables. #KenGenResults2018. @KenGenKenya
https://twitter.com/KenGenKenya/status/1055699832860524544
Debt profile as at 30th June 2018. We are focused on affordable and concessionary borrowing. #KenGenResults2018
https://twitter.com/KenGenKenya/status/1055699735166812166
.@KenGenKenya #KenGenResults2018 key Financial data average cost of debt is 3.10%
https://twitter.com/alykhansatchu/status/1055699284711129088
Tax expense for the year was Kshs 3,855 million compared to Kshs 2,455 million the previous year. @KenGenKenya
https://twitter.com/KenGenKenya/status/1055695811651231744
The prior years tax expense was lower largely due to effect of tax incentive (investment deduction) granted on commissioning of new geothermal wellhead plants.
Were looking into regional expansion, with the power transmission line invested 1,100km (Kenya_Ethiopia) 127km (Kenya_Uganda) 94km (Kenya_Tanzania) and 400kv planned transmission.#KenGenResults2018
https://twitter.com/RichFrontiers/status/1055695013575868417
Electricity revenue from geothermal power plants increased by 6% from Ksh16.1Bn in the previous year to Ksh17.1bn. @KenGenKenya #KenGen2018Results
https://twitter.com/RichTvAfrica/status/1055694928087605248
KenGen Financial highlights In a nutshell. #KenGenResults2018
https://twitter.com/alekey_isoe/status/1055694044893007872
Conclusions
A Year on Year Revenue Gain of 4.277% in what was a period that included not one Election but 2 and a drought is singularly a positive outcome.
Finance Income +150.63% They are managing their balance sheet more effectively.
Energy Sales +6.00% to 7,989 Gwh What was interesting here is that with regional Interconnections and with a possible switch from a diesel powered SGR to an electric one The energy curve might will steepen and accelerate.
By Ending the dividend drought KenGen is sending a positive Signal and its loud and clear. Rebecca spoke of a 33% Dividend Pay Out Strategy.
a Trailing PE of 6.125 leaves plenty of scope to the upside for the share price.
Results for the 6 months period ended 31st December 2017
HY Electricity revenue 14.924b vs. 14.676b +1.690%
HY Steam revenue 3.154b vs. 2.465b +27.951%
HY Other income 535m vs. 598m -10.535%
HY Revenue 18.613b vs. 17.739b +4.927%
HY Operating expenses [4.648b] vs. [4.392b] +5.829%
HY Steam costs [1.793b] vs. [1.279b] +40.188%
HY EBITDA 12.172b vs. 12.068b +0.862%
HY Depreciation and amortization [5.195b] vs. [4.529b] +14.705%
HY EBIT 6.977b vs. 7.539b -7.455%
HY Interest income 732m vs. 632m +15.823%
HY Finance costs [1.628b] vs. [1.605b] +1.433%
HY Profit before tax 6.081b vs. 6.566b -7.387%
HY Profit for the period 4.095b vs. 4.625b -11.459%
Basic EPS 1.86 vs. 2.10 -11.429%
Diluted EPS 0.62 vs. 0.74 -16.216%
Cash and cash equivalents balance at 31st December 701m vs. 6.545b -89.290%
No interim dividend
Company Commentary
Interest income increased from 632m in Dec 2016 to 732m in Dec 2017
EBITDA increased from 12.068b to 12.172b
PBT declined from 6.566b to 6.081b due to increased depreciation and amortisation cost.
on course to complete ongoing construction of 158MW Olkaria V power plant by 2019
Total Revenue 18.613b versus 17.739b +4.93%
This was due to higher energy revenues from geothermal and increased steam revenue following the completion of the Olkaria Suswa transmission line.
Steam Revenue increased from 2.465b to 3.154b due to completion of new wellhead plants and improved power evacuation following completion of Olkaria-Suswa transmission line.
Operating expenses +5.83%
Depreciation and amortisation expenses increased by 14.7% from 4.529b to 5.195b due to capitalisation of completed Wellheads and Wells towards the end of the last financial year.
Conclusions
headline Revenue +4.927% at 18.613b.
HY EBITDA 12.172b +0.862%
Note depreciation and amortisation +14.705% to [5.195b].
which crimped EPS -11.429%
Growth Curve intact but depreciation and amortisation weighed.
Steam Revenue was +27.951%
FY Electricity revenue 29.369b vs. 29.544b -0.592%
FY Steam revenue 5.189b vs. 6.856b -24.314%
FY Other income 882m vs. 2.210b -60.090%
FY Revenue 35.440b vs. 38.610b
FY Operating expenses [9.691b] vs. [8.948b] +8.304%
FY Steam costs [2.796b] vs. [3.167b] -11.715%
FY EBITDA 22.953b vs. 26.495b -13.369%
FY EBIT 13.709b vs. 16.271b -15.746%
FY Compensating tax vs. [2.431b]
FY Finance costs [3.417b] vs. [3.132b] +9.100%
FY Interest income 1.242b vs. 556m +123.381%
FY Profit before tax 11.534b vs. 11.264b +2.397%
FY Profit for the year 9.057b vs. 6.743b +34.317%
Basic EPS 4.12 vs. 3.07 +34.202%
Diluted EPS 1.37 vs. 1.08 +26.852%
Total assets 377.197b vs. 367.249b +2.709%
Cash and cash equivalents as at 30th June 7.831b vs. 6.756b +15.912%
No dividend
KenGen announced FY 17 results this morning, reporting an EPS of KES 1.37, up 27% y/y
EPS grew mainly on account of a lower effective tax ( 21% vs. 40% the year earlier) as well as reduced depreciation and amortization expenses (-10% yy)
Profit before tax grew a marginal 2% yy to KES 11.5bn
Electricity revenue was flat at KES 35.4bn due to reduced energy revenue following geothermal power evacuation constraints and hydro challenges over drought
Steam revenue declined 24% yy on account of lack of income from commercial drilling services
OpEx inflated 8% yy attributable to investment in capacity expansion.
Interest income more than doubled to KES 1.2bn following investment of funds from the Rights Issue
Finance costs rose 9% yy to KES 3.4bn
Profit after tax settled at KES 9.1bn (+34% yy).
Conclusions
Some will be disappointed with the dividend miss. However Shareholders are up +50% YTD, which more than compensates.
These were strong earnings.
Our market position and mix as at 30th June 2017.#KenGenFYResults @KenGenKenya
https://twitter.com/KenGenKenya/status/920524414185242630
#KenGenFYResults financial highlights @KenGenKenya
https://twitter.com/KenGenKenya/status/920525652423593984
Operating expenses increased by 8% from 2016 as a result of continued investment in power capacity expansion.#KenGenFYResults @KenGenKenya
https://twitter.com/KenGenKenya/status/920532491626311681
H1 Electricity revenue 14.676b vs. 14.757b -0.549%
H1 Steam revenue 2.465b vs. 2.514b -1.949%
H1 Other income 598m vs. 1.141b -47.590%
H1 Revenue 17.739b vs. 20.025b -11.416%
H1 Operating expenses [4.392b] vs. [4.141b] +6.061%
H1 Steam costs [1.279b] vs. [1.648b] -22.391%
H1 EBITDA 12.068b vs. 14.236b -15.229%
H1 Depreciation & amortisation [4.529b] vs. [4.519b] +0.221%
H1 Finance costs [1.605b] vs. [1.622b] -1.048%
H1 Profit before tax 6.566b vs. 8.384b -21.684%
H1 Profit for the period 4.625b vs. 5.668b -18.402%
H1 EPS (Basic) 2.10 vs. 2.58 -18.605%
H1 EPS (Diluted) 0.74 vs. 0.91 -18.681%
Cash and cash equivalents balance at 31st December 6.545b vs. 2.564b +155.265%
No interim dividend
Company Commentary
Lower revenue from steam and commercial drilling services
Steam Revenue decreased to 2.465m compared to 4,127m in the same period in the previous year due to transmission constraints in the despatch of wellhead Units
The Previous year amount included arrears of 1,613m following the signing of steam resources and maintenance agreement in September 2015
Other Income decreased to 598m from 1,141m attributable to decrease in revenue from commercial drilling services and insurance compensation.
Carbon credits earned 57m
Results were impacted by decommissioning of Garissa, Lamu and Embakasi Gas Turbine Thermal power plants and non receipt of revenue from commercial drilling services
Performance for the remaining period to 30 June 2017 is expected to improve following the completion of the evacuation line for the Wellheads and fixing of machine breakdowns which affected some power plants
commencement of the construction of 158MW Olkaria V is expected to take place in Q3 2016/2017 financial year
Conclusions
some operational challenges it seems. its a very cheap share in my opinion.
FY 16 Earnings
FY Electricity revenue 29.544b vs. 25.602b +15.397%
FY Steam revenue 6.856b vs. 3.689b +85.850%
FY Other income 2.210b vs. 0.666b +231.832%
FY Expenses [8.948b] vs. [8.447b] +5.931%
FY Steam costs [3.167b] vs. [3.689b] -14.150%
FY EBITDA 26.495b vs. 17.821b +48.673%
FY Depreciation and amortization [10.224b] vs. [6.479b] +57.802%
FY EBIT 16.271b vs. 11.342b +43.458%
FY Finance costs [3.132b] vs. [3.011b] +4.019%
FY Profit before tax 11.264b vs. 8.690b +29.620%
FY Tax [expense]/ credit [4.521b] vs. 2.827b -259.922%
FY Profit for the year 6.743b vs. 11.517b -41.452%
FY Other comprehensive income [0.296b] vs. 54.247b -100.546%
Basic EPS 3.07 vs. 5.24 -41.412%
Diluted EPS 1.08 versus 1.75
Total assets 367.249b vs. 342.520b +7.220%
Cash and cash equivalents balance at June 6.756b vs. 3.292b +105.225%
No dividend
Number of Outstanding Shares: 6,243,873,779
Company Commentary
Total electricity sales volume grew by +11%
Electricity Revenue grew by 15%
Total Revenue increased +29% to 38.61b
280MW Geothermal power plants which for the first time was operational for the full year.
Depreciation and amortisation expenses increased by 58% mainly due to revaluation of assets and FY depreciation of OlKaria 280MW
Conclusions
The dividend pass speaks to a desire to optimise the Balance sheet and build buffers.
Big depreciation charge has been put through.
On a PE of 6.38 This is a cheap Utility particularly given the level of Geothermal in the Energy configuration.
Kenya Electricity Generating Company Limited H1 through 31st December 2015 vs 31st December 2014
H1 Electricity revenue 14.757370b vs. 11.658780b +26.557%
H1 Interest income 288.589m vs. 172.452m +67.345%
H1 Other income 3.476785b vs. 0.351469b +889.215%
H1 Total revenue 18.522744b vs. 12.182701b +52.041%
H1 Other gains 143.422m vs. [24.339b] +689.268%
H1 Operating costs [8.659795b] vs. [6.990924b] +23.872%
H1 Finance costs [1.622310b] vs. [1.377296b] +17.789%
H1 Profit before tax 8.384061b vs. 3.790142b +121.207%
H1 Tax [expense]income [2.715716b] vs. 1.137646b -338.714%
H1 Profit for the period 5.668345b vs. 4.927788b +172 15. 028%
H1 Total comprehensive income for the period 5.653548b vs. 4.932392b
EPS 2.58 vs. 2.24 +15.179%
Total assets 355.009216b vs. 342.519995b +3.646%
Cash and cash equivalents at the end of the period 2.564076b vs. [3.440810b] +174.520%
Renewable driving strong electricity sales growth.KenGenProfitsH1
pic.twitter.com/pkmNTDN3fP
KenGenKenya Our revenue. KenGenProfitsH1
pic.twitter.com/EhHjn4bjR4
@KenGenKenya H1 EBITDA +76% H1 PBT +121% H1 PAT +15% Total Revenue +52% KenGenProfitsH1 Other sources of Revenue +888%
https://mobile.twitter.com/alykhansatchu/status/704178017136992256?p=v
KenGenKenya @alykhansatchu sharing w our Corporate Finance Manager at our Half Year Results Announcement event.KenGenProfitsH1
pic.twitter.com/LrhzUocRz3
KenGenKenya Geothermal is our second source of energy with an installed capacity of 513.8MW. #KenGenProfitsH1
pic.twitter.com/e16wzpKnyV
Conclusions
Strong Results confirming the new Trend Line for Earnings.
The Key Challenge around valuation is the level of Dilution around the rights Issue
Even factoring in a strong dilution its a cheap share
Full Year Earnings through 30th June 2015 versus through 30th June 2014
Installed Capacity (MW) 1,611 vs. 1,337 +20.5%
Units Sold (GWh) 7,020 vs. 6,084 +15.4%
FY Total Revenue 26.227b versus 18.075b +43.77%
FY Electricity revenue 25.602bn vs. 17.424bn +46.9%
FY Other income 625mn vs. 651mn -3.99%
FY Operating expenses [8.406bn] vs. [7.018bn] +19.8%
FY EBITDA 17.821bn vs. 11.057bn +61.2%
FY Interest income 359mn vs. 416mn +13.7%
FY Finance costs [3.011bn] vs. [2.588bn] +16.3%
FY Profit before tax 8.690bn vs. 4.158bn +108.99%
FY Profit for the year 11.517bn vs. 2.826bn +307.5%
FY Other comprehensive income 54.247bn vs. 1.244bn +4,260.7%
FY Total comprehensive income 65.764bn vs. 4.070bn +1,515.8%
EPS 5.24 vs. 1.29 +306.2%
FY Total Assets 342.520bn vs. 250.206bn +36.9%
Dividend per share 0.65 vs. 0.40 +60%
Installed Capacity +25.71%
Total Revenue +43.77%
Company Commentary
Geothermal contributed significantly to both capacity and energy revenue
Profit after Tax increased by 308% from 2.826b to 11.517b propelled by capacity growth, improved performance, and tax credit from capital allowances enjoyed by the company following the commissioning of 280MW geothermal Plants, Wellheads in Olkaria and Ngong Wind.
Asset Base +37%
65cents a share dividend
KenGen EPS rose 306.2% yy to KES 5.24 for the full year results, aided by revenue growth and a tax credit. Revenue appreciated by 46.9% yy to KES 25.6bn helped by revenue sales from the ramped up geothermal power both in terms of capacity and energy (+213.0% yy to KES 12.2bn). Up 19.8% yy, operating expenses stood at KES 8.4bn over costs arising from the just completed plants. Depreciation and amortization increased 37.1% yy to KES 6.5bn on the back of new plants. Finance costs rose 16.3% yy to KES 3.0bn as the company secured borrowings to fund the new plants. While PBT settled at KES 8.7bn from KES 4.2bn the previous year, after tax profit came in at KES 11.5bn from KES 2.9bn the prior period, translating to a 307.5% year on year growth. A tax credit of KES 2.9bn accruing from capital allowances earned from capital expenditure helped push up the profit. The Directors of the company have recommended a DPS of KES 0.65, up from KES 0.40 the previous period. (Source Company, Kestrel Research)
Some of my Tweets
https://twitter.com/alykhansatchu
Geothermal juiced Earnings big and thats not even with a full 12 month contribution @KenGenKenya @AmugoMugo
https://twitter.com/alykhansatchu/status/653809166654509056
We have appointed Transaction Advisors to raise equity funding @AmugoMugo @KenGenKenya also looking at Asset backed Securities
https://twitter.com/alykhansatchu/status/653807458062860288
@KenGenKenya reports big Full Year Profits gain cc @AmugoMugo @NSEKenya
https://twitter.com/alykhansatchu/status/653803700864032768
Geothermal driving revenue growth @KenGenKenya #Kengenprofits2015
https://twitter.com/alykhansatchu/status/653802303816892416
@KenGenKenya #Kengenprofits2015 FY EPS +306% @AMUGOMUGO @NSEKenya #energy
https://twitter.com/alykhansatchu/status/653801152635645952
Conclusions
Really strong Earnings. Its a Capacity [now beginning to gain meaningfully via Geothermal] Play.
6 months through 31st December 2014 versus through 31st December 2013
Installed Capacity 1,575 versus 1,231 MW
Units sold 3,383 versus 3,098 GWh
First Half Total Revenue 12.183b versus 8.916b
First Half Electricity Revenue 11.659b versus 8.482b
First Half Operating Expenses [6.991b] versus [5.842b]
First Half Finance Costs [1.377b] versus [1.385b]
First Half Profit before Tax 3.790b versus 1.836b
First Half Profit After Tax 3.790b versus 1.836b +106.42%
First Half Earnings Per Share 2.24 versus 0.46 +386.95%
Revenue from electricity sales rose 37 percent to 11.659 billion shillings for the six months to December, the firm said. Total revenue rose to 12.18 billion shillings from 8.92 billion shillings.
KenGen, which is planning to raise cash for expansion and also to help the company restructure its balance sheet, said its installed capacity had risen to 1,575 megawatts from 1,231 MW.
The company will carry out a cash call to raise 30 billion shillings ($331.13 million), which the energy ministry said late last year could be completed in the first quarter of this year.
Albert Mugo, KenGens chief executive, said the plans for the capital restructuring are at an advanced stage, but gave no further details.
KenGens expansion plans are part of a greater government push to increase power production capacity by an extra 5,000 MW by 2017 from about 1,664 MW now, to attract investment.
KenGen said earnings per share rose to 2.24 shillings from 0.46 shillings but would not pay an interim dividend. The firm did not pay a dividend in the same period in 2013.
Conclusions
Stronger margins and some capacity expansion. the Capital Call needs to get underway because its been a Drag for a while.
Full Year Earnings through 30th June 2014 versus through 30th June 2013
Full Year Revenue 17.423771b versus 16.451195b +5.911%
Full Year Interest Income 416.154m versus 676.109m -38.4486%
Full Year Other income 650.896m versus 594.888m
FY Total Revenue 18.490821b versus 17.722192b +4.337%
Full Year Expenses [11.812473b] versus [10.641359b] +11.005%
Full Year Finance Costs [2.587519b] versus [3.000802b] -13.772%
Full Year Profit before Tax 4.157948b versus 4.026924b +3.25%
Full Year Taxation [charge]/credit [1.331625b] versus 1.197780b -Big Swing See Company commentary
Full Year Profit After Tax 2.826323b versus 5.224704b -45.90%
Full Year Earnings Per Share 1.29 versus 2.38 -45.79%
Final Dividend 40cents a share
Company Commentary
Generation capacity grew by 7.7% from 1,239MW in 2013 to 1,335MW in 2014 following the connection to the national grid of 70 MW, which is part of the Olkaria 280MW geothermal project, and 25.6MW from Wellhead Units.
However, profit after tax declined to Shs 2,827 million from Shs 5,225 million due to tax expense in the current year compared to tax credit in the previous year. The tax credit last year arose from higher capital allowances enjoyed at 150% for investments in power projects outside major cities.
Final Dividend 40cents a share
The company is on course to delivering 844MW as part of the Government goal to increase generation capacity by over 5000MW by 2016.
To Finance these projects, the Company will continue to explore possible ways of raising funds through equity and debt capital markets, development financial institutions (DFIs), public private partnerships (PPP) and off balance sheet initiatives.
Conclusions
This was signalled ahead of time, in fact.
H1 through 31st December 2013 versus H1 through December 2012
H1 Electricity Revenue 8.483b versus 8.432b
H1 Operating Expenses [5.695b] versus [5.144b]
H1 Operating Profit 3.221b versus 3.995b
H1 Finance Costs [1.385b] versus [1.566b]
H1 PBT 1.836b versus 2.429b -24.413%
H1 PAT 1.018b versus 1.659b -38.63%
H1 EPS 0.46 versus 0.75 -38.66%
Conclusions
The Trough in Earnings might last for up to 24 36 months as KenGen bulks up big. The Share price remains under near term pressure [-19.557% in 2014] ahead of a supersized Rights Issue.
FY Earnings through 30th June 2013 versus FY Earnings through June 2012
FY Electricity Revenue 16.451b versus 15.872b +3.6479%
FY Operating Expenses [10.575b] versus [10.266b]
FY Gross Profit 5.876b versus 5.606b
FY Interest Income 676m versus 952m
FY Other Income 595m versus 612m
FY Operating Profit 7.094b versus 7.017b +1.0973%
FY Finance Costs [3.001b] versus [2.972b]
FY Profit Before Tax 4.093b versus 4.045b
FY Tax Income [Expense] 1.157b versus [1.223b]
FY PAT 5.250b versus 2.822b +86.038%
FY Earnings Per Share 2.39 versus 1.28 +86.71%
Final Dividend 60 cents unchanged
Conclusions
Strong Results assisted by a Tax Credit of 1.157b versus a Tax Charge of [1.223b] in the previous FY.
FY PBT marginally higher but FY PAT +86.038%.
H1 Earnings through December 2012 versus through December 2011
Electricity Revenue 8.432b versus 7.808b +7.99%
Operating Expenses [5.144b] versus [5.125b] +0.37%
Gross Profit 3.288b versus 2.683b
Interest Income 0.429b versus 0.632b
Operating Profit 3.995b versus 3.639b
Finance Costs [1.566b] versus [1.510b]
H1 PBT 2.429b versus 2.129b +14.0911%
Net Profit for the Year 1.659b versus 1.490b +11.3422%
H1 EPS 0.75 versus 0.68 +10.294%
Company Commentary
Cites improved Hydrology
Capacity Expansion in particular via Geothermal
Conclusions
Solid Results.
The Capacity Expansion is feeding through to the Bottom Line for Equity Holders in a balanced and structured Manner.
There is Headroom in the Price to 15.00+
Full Year through June 2012 versus Full Year through June 2011
Electricity Revenue 15.999b versus 14.389b +11.189%
Operating Expenses [10.266b] versus [10.014b]
Finance Costs Net [2.972b] versus [1.997b] +48.823%
Profit Before Tax 4.045b versus 3.651b +10.791%
Profit After Tax 2.822b versus 2.080b +35.67%
Other Comprehensive Income [0.962b] versus [0.633b]
Earnings Per Share 1.29 versus 0.94 +37.234%
Final Dividend 0.60 versus 0.50 +20%
The company plans to install an additional capacity of 65 megawatts by 2014 from its geothermal fields, it said, adding another plan to generate an additional 560 MW of geothermal electricity were at an early stage.
KenGen, has invited parties to submit bids for the development of 560 MW geothermal power plants, the company said on Thursday.
The company said it planned to develop the power plants in phases of 140 MW each at Olkaria within the east African nations Rift Valley under a joint venture arrangement in which successful bidders would build, and later transfer, the facilities back to the firm after 10 to 20 years.
The successful bidder or consortium would be the majority shareholder, KenGen said in a call for the bids in the Kenyan newspaper, the Daily Nation.
Conclusions
I think the Bulk Up is clearly at hand and it was that Risk [around Execution and finding the Capital] that has now apparently been mitigated. Therefore, on a PE of 6.4728 and with a Yield of 7.185%, I reckon the Price heads to 10.00. This is a Cheap Share.
H1 Dec 2011 versus H1 Dec 2010 Swot Analysis
Total Revenue 7.808300b versus 6.602281b +18.266%
Financing Costs Net 1.509902b versus 0.663195b +127.67%
Profit Before Tax 1.702813b versus 1.280147b +33.01%
Profit After Tax 1.191969b versus 0.896103b +33.01%
Earnings Per Share 0.54 versus 0.41 +31.7%
Conclusions
Earnings beginning to see some Upside Traction and evidenced by the 33.01% Improvement in H1 PAT. I went to the Investor Briefing and I noticed a great deal of Confidence. On a Trailing PE of less than 8, it look set to improve from here.
I went to the Investor Briefing Twitpic
http://www.twitpic.com/8q1vy7
KenGen Geothermal Road Map Twitpic
http://www.twitpic.com/8q21yj
Full Year to June 2011 versus Full Year to June 2010
The FY EPS for 2010 has been restated to 1.49 versus 0.89 previously reported
PBT 3.651b versus 2.485b
NET Profit for the Year 2.080b versus 3.287b
Total Comprehensive Income 1.447b versus 4.65b
EPS 0.94 versus a Restated 1.49
Dividend Held at 0.50
Expiry of 5 Year IPO Concession hence Tax Rate is now 30%.
Full Year to June 2011 versus Full Year to June 2010
The FY EPS for 2010 has been restated to 1.49 versus 0.89 previously reported
PBT 3.651b versus 2.485b
NET Profit for the Year 2.080b versus 3.287b
Total Comprehensive Income 1.447b versus 4.65b
EPS 0.94 versus a Restated 1.49
Dividend Held at 0.50
Expiry of 5 Year IPO Concession hence Tax Rate is now 30%.
Conclusions
A lot of curve Balls
1st Half to December 2010 versus 1st Half Dec 2009
Electricity Revenue 6.341243b versus 4.390490b
Operating Profit 1.943342b versus 1.514732b
Financing Costs NET 663.195m versus 362.696m
PAT 896.103m versus 863.763m
EPS 0.41 versus 0.39
No Interim Dividend
Major Focus is on Geothermal Generation.
Conclusions
Higher Financing Costs have eaten into the Bottom line a Little but ultimately the Bond Proceeds have allowed kenGen to accelerate the Scale Up. The Question revolves around when the Earnings Trough turns
higher and how long this Bottoming out Process takes. |
