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KENGEN 2021-2025
My 2 cents
#21 Posted : Sunday, October 31, 2021 7:12:53 PM
Rank: Member


Joined: 6/2/2010
Posts: 717
Just a quick explanation on why a profitable company can lack cash. Imagine you buy a Kisaju plot for 500k and then sell it for 1M to a customer that buys it on credit i.e. he will pay you in 6 months time. You have made a lot of profit (100%) but in the interim do not have cash.
VituVingiSana
#22 Posted : Sunday, October 31, 2021 7:44:57 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,667
Location: Nairobi
Deferred Taxation.

Wait for the Annual Report. It will explain it.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
watesh
#23 Posted : Monday, November 01, 2021 6:32:09 PM
Rank: Member


Joined: 8/10/2014
Posts: 891
Location: Kenya
Ericsson wrote:
Kengen FY2020/2021 Results
Revenue increased by 4.06% from ksh.44.11bn in 2020 to 45.901bn in 2021.
Ongoing geothermal drilling services in Tulu Moye in Ethiopia contributed ksh.1.784bn compared to 440mn in 2020
Profit before tax grew by 7% to ksh.14.76bn from 13.79bn in 2020.
Dividend payout ksh.0.3 per share.


The largest shareholder in the company benefited the most. Took a large chunk in taxes and kept the dividend small, even smaller than what was paid out in 2017 despite the rise in revenue and profits over the years.
My 2 cents
#24 Posted : Monday, November 01, 2021 6:43:47 PM
Rank: Member


Joined: 6/2/2010
Posts: 717
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)
VituVingiSana
#25 Posted : Monday, November 01, 2021 9:32:04 PM
Rank: Chief


Joined: 1/3/2007
Posts: 17,667
Location: Nairobi
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)
I think you are being kind when you say they stick their finger in the sky...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
My 2 cents
#26 Posted : Monday, November 01, 2021 10:33:13 PM
Rank: Member


Joined: 6/2/2010
Posts: 717
VituVingiSana wrote:
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)
I think you are being kind when you say they stick their finger in the sky...


I said point not stick ;) world of a difference
VituVingiSana
#27 Posted : Tuesday, November 02, 2021 7:35:56 AM
Rank: Chief


Joined: 1/3/2007
Posts: 17,667
Location: Nairobi
My 2 cents wrote:
VituVingiSana wrote:
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)
I think you are being kind when you say they stick their finger in the sky...


I said point not stick ;) world of a difference
How do they get it wet?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#28 Posted : Tuesday, November 02, 2021 8:22:41 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)


BAT
Safaricom
Jubilee Holdings
Who have had had consistent dividend policy are not banks.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#29 Posted : Tuesday, November 02, 2021 8:43:47 AM
Rank: Member


Joined: 6/2/2010
Posts: 717
Ericsson wrote:
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)


BAT
Safaricom
Jubilee Holdings
Who have had had consistent dividend policy are not banks.


Yes, those too. Safaricom is a quasi-bank.
My 2 cents
#30 Posted : Tuesday, November 02, 2021 8:48:56 AM
Rank: Member


Joined: 6/2/2010
Posts: 717
VituVingiSana wrote:
My 2 cents wrote:
VituVingiSana wrote:
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)
I think you are being kind when you say they stick their finger in the sky...


I said point not stick ;) world of a difference
How do they get it wet?


Long story short, dividends for some of our companies are not planned for the long term. They board dont seem to follow any dividend policy. And our companies do not take pride in a long chain of unbroken and consistently rising dividends. (So called dividend kings in other markets). Many of our boards view dividends as expendable. Management would rather keep the cash and 'play' with it.
Ericsson
#31 Posted : Tuesday, November 02, 2021 8:49:48 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
My 2 cents wrote:
Dividend for the year ended; (Divided by 3 pre-2016 to adjust for 2 for 1 rights issue in 2016)

2008 - 0.30
2009 - 0.17
2010 - 0.17
2011 - 0.17
2012 - 0.20
2013 - 0.20
2014 - 0.13
2015 - 0.22
2016 - NIL
2017 - NIL
2018 - 0.40
2019 - 0.25
2020 - 0.30
2021 - 0.30

See 2008. Same as 2021. After 13 years - no growth :(
Our companies (other than the banks) have no consistent dividend policy.
The board licks their finger and points it to the sky to determine the annual dividend :)



During the period most of them were on a borrowing spree and with some of the debt maturing,money had to be kept aside for debt repayments.
Others financial performance is worse now like HFCK, Portland cement,Lafarge Bamburi.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#32 Posted : Tuesday, November 02, 2021 8:57:45 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
https://www.businessdail...debt-write-offs-3603202

Kengen did a debt repayment of ksh.7.76bn for on lent loans in the financial year ended 30 June 2021
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#33 Posted : Tuesday, November 02, 2021 8:58:57 AM
Rank: Member


Joined: 6/2/2010
Posts: 717
And by the way why does KenGen pay dividend 7 months after year-end? Seriously there should be a cap of some sort on how far back a company should pay dividends after year end. Most big banks usually pay after 4 months (YE December, Payment April). Some years KCB stretches this to July!
Ericsson
#34 Posted : Tuesday, November 02, 2021 9:21:21 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
My 2 cents wrote:
And by the way why does KenGen pay dividend 7 months after year-end? Seriously there should be a cap of some sort on how far back a company should pay dividends after year end. Most big banks usually pay after 4 months (YE December, Payment April). Some years KCB stretches this to July!


Safaricom used to pay 8 months after year end.
Which most big banks are this that pay in April apart from Coop bank.
The others pay in May,June,July.
Other companies even stretch to August.
The regulation in place if I'm not wrong is 6 months after date of release of Financial results.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
My 2 cents
#35 Posted : Tuesday, November 02, 2021 3:50:51 PM
Rank: Member


Joined: 6/2/2010
Posts: 717
Some years back Barclays used to pay in April. Yes true that most big banks pay in May. I got the month wrong.
Ericsson
#36 Posted : Sunday, November 07, 2021 1:40:37 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
Kengen is still assessing the security situation in Ethiopia's Tigray region before deciding whether to withdraw 200 Kenyans drilling geothermal wells in the neighbouring country
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#37 Posted : Thursday, November 11, 2021 4:07:51 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
https://tradingroom.co.k...deepest-geothermal-well/
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kawi254
#38 Posted : Thursday, November 11, 2021 5:11:20 PM
Rank: Member


Joined: 2/20/2015
Posts: 441
Location: Nairobi
Ericsson wrote:
https://tradingroom.co.ke/kengen-drills-ethiopias-deepest-geothermal-well/


did they get steam? Article doesn't mention that.
Ericsson
#39 Posted : Thursday, November 25, 2021 6:15:15 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,121
Location: NAIROBI
The Auditor's report on Kengen raises 2 issues which necessitated the qualified report:
1. Non-valuation of Property, Plant and Equipment since 2015:
The company revealed to investors on Tuesday that it couldn’t carry out a valuation on assets last year owing to COVID-19 travel restrictions.
The company however says it will complete the revaluation which is carried out once every five years by the end of 2021.
The expected revaluation of assets is likely to change the company’s net earnings reported in the period.
The depreciation affects net earnings which is usually represented by revenue left after the offsetting of all costs, expenses, depreciation, interest and taxes.
This is because accumulated depreciation is usually a running total of the depreciation expense that has been recorded over the years and which is offset against the sale of the asset.

"Management...were unable to secure services of an appropriate expert to cary out its asset's valuation..."

2. Work in Progress:
Auditor General Nancy Gathungu has flagged Ksh.99 billion worth of idle projects in electricity generating company KenGen.

Ksh.4.5 billion relating to transmission lines put up in the 2008/2009 financial year but which have not been used to further KenGen’s business but are instead being used by another company for revenue generation.
Instead, KenGen continues to service a loan and accruing interest in respect to the project from which it doesn’t book revenues from, raising the firm’s operating costs in the process.

Ksh.79.3 billion was used in the drilling of wells between 2011 and 2015 but the wells have not been connected to any plant for the generation of power and ultimately, revenues for KenGen.
The project financed by a loan from the Export-Import Bank of China (EXIM) continues to attract interest payments without a corresponding value for money to the electricity generating company.

A further Ksh.646 million was deployed towards feasibility studies for wind power projects that lack both contract documentation and feasibility study reports.

The balance of questionable spending by KenGen covers the construction of a building referred to as Hydro Plaza, whose final cost was inflated by Ksh.111.3 million or a respective 74 per cent after a change in a contractor with no explanation given to the significant increase in the cost of the building.

“The management has not provided reasons for the delay in conclusion of feasibility studies for over eight years,” adds the audit report.



“projects totalling KES 94.8B in respect of capital projects initiated several years back but had no movement over the last 2- 10 years & which may have stalled...Mgt did not provide explanations on why the projects have not been completed & capitalized.

Link:https://www.kengen.co.ke/images/2021/KenGen-Abridged-Results-Outlined-Press-Ready.pdf
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kawi254
#40 Posted : Monday, November 29, 2021 8:51:32 PM
Rank: Member


Joined: 2/20/2015
Posts: 441
Location: Nairobi
What happened to the public-private partnership (PPP) development of up to 140 MW of the Olkaria VI geothermal power project?

It has been a year+ since that last 4 were shortlisted. This a rerun after first tendering and the loser went to court...roughly 5 years tendering & re-tendering one thing.

Also the Menengai Geothermal wells under GDC have never been commercialized. I wonder why?. Too many well drilled and not attached to any power plant all over Olkaria & Menengai.
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