Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on KSK POWER VENTUR PLC. We currently have 7 research reports from 1 professional analysts.
|30Nov16 07:00||RNS||Half Yearly Report|
|29Sep16 16:25||RNS||Result of AGM|
|14Sep16 15:47||RNS||Notice of AGM|
|19Jul16 07:00||RNS||Audited Results for the year ended 31 March 2016|
|31May16 13:44||RNS||Indian Subsidiary Results and Trading Update|
|22Mar16 18:23||RNS||Holding(s) in Company|
|26Nov15 09:18||RNS||Half Yearly Report|
Frequency of research reports
Research reports on
KSK POWER VENTUR PLC
KSK POWER VENTUR PLC
H1 FY 2017 results
30 Nov 16
KSK has released its H1 results to the end of September 2016. These report a period of continued significant generation at Mahanadi (higher than H1 FY 2016, though lower than H2 2016), although transitory coal sourcing issues have resulted in revenues and profits behind our expectations, and we adjust our numbers for the full year (detailed below – we leave FY 2018 unchanged). More positively, the grid access and PPAs for Mahanadi are performing as expected, and construction is progressing apace on the next two 600MW units, which when completed will take capacity to 2.4GW. We expect further updates on this in H1 next year, which could help drive continued improved sentiment among investors, and positively impact the shares.
FY 2016 results
19 Jul 16
KSK has released its FY 2016 results, reporting strong revenues of US$675m (versus our US$600m forecast) and EBITDA of US$252m (versus our US$185m forecast). Based on this OCF was US$144m versus US$89.5m last year – demonstrating the impact of Mahanadi, which has been operating at a PLF of 80% on its entire 1,200MW existing capacity since October. We have increased our FY 2017 forecasts (revenues US$739m from US$644m, EBITDA US$273m from US$241m) given the strong generation performance from Mahanadi in H2 and higher pricing than we had expected in FY 2016. Mahanadi has now begun construction of the next 1,200MW phase (which would make 2,400MW total) thanks to new debt availability from KSK’s banks agreed earlier this year, meaning operating cash flow should continue to be augmented in the coming years.
H1 FY 2016 results
26 Nov 15
KSK has released its H1 FY 2016 results. Revenues were strong though margins were behind and interest charge ahead of our expectations. These could improve with greater utilisation of the generation base going forward. More important than the H1 financial performance and likely to provide a significant benefit in H2 however is the news that grid access for the Mahanadi plant into Uttar Pradesh and Tamil Nadu has been implemented allowing PLF on the 1,200MW of available capacity to rise from 40% to 80% currently. This will have a positive earnings impact but also help de-risk and add flexibility to the financing structure for the project going forward. We have adjusted our FY 2016 sales forecasts up though our earnings numbers are maintained given the increased Mahanadi utilisation in H2 (discussed below). Operations at Wardha continue to be hampered as KSK pursues a long-term PPA and better coal pricing for the project. Overall, though we remain cautious the progress on Mahanadi is a distinct positive that should provide significant benefit if sustained going forward.
KSK Power Ventur*
21 Jul 15
KSK has released its results to March. These have reported revenues at US$382m coming in ahead of our US$344m. Operating profit was below our number however at US$40.6m versus our US$60.1m due in part to a US$24.6m impairment of compensation due on previous coal sales to the Wardha plant which are now to be settled by revised future prices as opposed to upfront cash. This had a knock on effect causing PBT to be behind our (US$136m) at (US$160m). EPS was ahead however coming in at (32.2c) versus our (58.8c) on the back of a deferred tax credit of US$91.2m. We have maintained our FY 2016 forecast (EPS shifts due to a higher number of shares and there is scope for upgrades from increased utilisation at Wardha and Mahanadi) and publish numbers for FY 2017.
Preliminary results show earnings ahead of forecast
16 Jul 15
KSK's preliminary results to 31 March show sales at $335.9m, down 14% but well ahead of our forecast $279.4m. EBTIDA at $101.9m was down 36% but well above our $72.1m. Net interest rose 57% to $130.2m against our $99.7m leaving PBT nearly in line at -$72.1m versus our -$69.9m. Much of the gap was due to our cautious exchange rate assumption but there was also better operational performance and development fees were ahead although we still to see these dropping away going forward. At the interest line the currency effect reverses and there are also timing differences that explain the forecasting variance. With a better tax charge EPS was -30.77c against our forecast of -32.97c.
09 Mar 15
KSK has provided an update on its operations and the ongoing coal block auctions in India. Operationally the expected uptick in activity on both Wardha and Mahanadi has not come through in the second half (despite the second 600MW unit on Mahanadi being commissioned) meaning revenues in FY 2015 are expected to be flat on FY 2014. Based on lower PLFs and some pricing and margin pressure for these projects versus our assumptions we are cutting forecasts for FY 2015 and we roll this effect over into FY 2016 too. Progress on sales and profitability at Mahanadi and Wardha could potentially come through quite quickly however. Mahanadi could more than double offtake once it receives grid access to sell power into Tamil Nadu and Uttar Pradesh. Wardha is also awaiting access to sell power into other states but also execution of a PPA with the Maharashtra state electricity board. The coal situation with Wardha which is depressing margins is also making some progress. Any and all of these factors could act in the coming months to increase offtake and profitability.
N+1 Singer - T. Clarke - Strong conclusion to FY16, record order book
28 Mar 17
After significant upgrades at the time of the full year update (PBT forecast +43% FY16; +14% FY17), today’s results are c.4% ahead of our expectations at the PBT level and show strong growth on the prior year (PBT +48%). All regions achieved positive growth in revenue. The outlook statement refers to a still growing order book (£350m at the end of February vs. £330m at the year end) and the strength of recent trading, with London & the South East and Scotland said to be particularly positive. The Group has reiterated its ambitions to improve margins, but we have not incorporated this into our forecasts at this stage. We have nudged up our FY’17 forecasts (PBT +5%) and introduced FY’18 forecasts that imply 2% PBT growth. Despite the well justified bounce in the share price, the shares still trade at a significant discount to the peer group (7.6x FY17 PE, 4% yield).
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
N+1 Singer - Xaar - 2016 results slightly ahead, reduced visibility in 2017
22 Mar 17
Xaar’s 2016 results were slightly ahead of our forecasts, showing a small decline in profit vs. the previous year. Sales grew by 3% to £96.2m, reflecting lower sales from ceramic tile printing, offset by strong growth from Packaging and licence income and an initial contribution from the Engineered Printing Solutions acquisition. Adjusted PBT reduced by 6% to £19.5m (N+1Se £18.7m). Xaar has made significant progress in terms of strategic development in 2016. Its growth drivers are broadening out and it remains focused on its target of £220m sales by 2020. However near term growth is dependent on new products and management has guided to a higher than normal H2 weighting and reduced visibility, which is likely to restrain the share price.
N+1 Singer - WYG - Mixed conclusion to FY17, reassuring FY18 outlook
23 Mar 17
WYG’s trading update highlights a frustrating conclusion to FY17 for the UK business, where profitability is expected to be below the prior year despite continued revenue growth. More positively, the performance of the international operations has been ahead of expectations for revenue and profit and the February order book remains a healthy £150m, consistent with the prior year end. Revised FY17 operating profit expectations are just under £9m, prompting a 14% reduction in our PBT forecast. The strength of the order book and pipeline mean than management expectations for FY18 are unchanged (we trim FY18 PBT by 3%) anticipating another year of very strong PBT growth (28% forecast for FY18 following 20% growth in FY17). We expect further details on trading with the prelims on 6th June and plan to introduce FY19 forecasts at that stage. The shares are trading on <12x FY17 P/E, falling to <10x FY18.