Join us for an in-depth Sarmaaya Financials weekly podcast with Khizar Kahloon. This week’s guest speaker is Abdul Rehman, a seasoned investor keen to share his extensive knowledge with our listeners.
Key Takeaways
Most IPPs are not listed and are owned by the government.
The power sector's capacity payments are secured by the government, and they are not as volatile or risky as other sectors making it one of the safest sectors for retail investors.
Debt repayment for power companies is between 10 to 12 years.
Plants with no debt repayments are better options for investments.
K-Electric has payables and receivables pending to SSGC and PSO
KAPCO has an impressive payout ratio and if the PPA is extended it will be a good stock.
EPQL and SPWL have paid a good number of dividends in the past but in future, we don't expect a major dividend.
IPP requires contracts to create solar energy or alternative energy projects.
Timestamp
0:09 Greetings
0:22 Guest Introduction
0:48 House Rules
02:20 Which companies are listed under the Power Sector?
03:45: What is the capacity payment? Why do we have to pay capacity payments?
05:54 We read that we have 45,000 capacity, but only 25-30K demand. Then why do we have load shedding?
10:00 Can you please explain circular debt in layman's terms?
12:10 In a recent HUBCO presentation ROE in dollarized return is listed as 30% is it not too much?
14:25 Which ratios should we focus on in determining the real value of a power company?
18:06 What is going on with imported coal power plants? Lots of news of default, and coal import restrictions. What will be the impact of this and on which company?
21:45 Many IPPs did deal with the Government by equating the USD to $168 CPEC plants didn't. Do you think it was a good deal?
25:34 What is your advice for retail investors who are invested or like to invest in this sector?
30:05 Does HUBCO have multiple energy units?
32:07 What are your views about KAPCO?
34:42 Is the power sector a good option for investors?
35:59 Power capacity, receivables, dividends and debt are the essential things to consider. How much debt should a company have? What are your views about K-Electric, will its price reduce or increase and what are the factors that might reduce or increase the stock price?
40:21 KAPCO's PPA has expired, will they renew the agreement?
44:35 EPQL and SPWL are two of the high dividend yields. How much is their dividend capacity in reserves?
45:55 Nishat Power and Nishat Chuniya Power which is a better option?
47:29 Information for retail investors
48:20 Can power plants establish their own solar power plants? If capacity is more than the demand, then why can't power plants sell electricity?
51:03 As we know that Pakistan is a single-buyer market, will we move toward multiple buyers for power? How will such a market be managed?
54:29 Will Nishat Power be a good stock for investment?
55:37 Outro
If you have any queries, please let us know in the comments. Thank you for your support!
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5 окт 2024
