Author Topic: SPWL -- Saif Power Limited  (Read 28737 times)

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SPWL -- Saif Power Limited
« Reply #-1 on: November 04, 2014, 07:08:31 PM »

Offline SBM

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SPWL -- Saif Power Limited
« on: June 26, 2014, 11:29:52 AM »
All about Saif Power Limited
« Last Edit: June 26, 2014, 11:56:01 AM by M&M »
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SPWL -- Saif Power Limited
« Reply #1 on: June 26, 2014, 11:30:50 AM »
company has filed for listing at KSE. It will take time, not before august.
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SPWL -- Saif Power Limited
« Reply #2 on: June 26, 2014, 11:31:06 AM »

Saif Power Limited

Saif Power Ltd (SPL) is a 225 MW Combined Cycle Thermal Power Project under Government of Pakistan (GOP) Power Policy 2002 on a Build, Own and Operate basis in Sahiwal District of Punjab.

SPL achieved Financial Close in September 2007 and Commercial Operations Date was achieved on April 30, 2010.

Summary description of power plant

Plant operates on duel fuel where natural gas is the primary fuel and High Speed Diesel (HSD) is the back up fuel.  Under present agreement with Sui Northern Gas Pipelines Limited, plant is run for 9 months on Gas between March 1st and November 30th while for the remaining period, the Power Purchaser dispatches the plant on HSD.

Plant has two gas turbines and one steam turbine.  Gas Turbines are 6 FA machines from General Electric which have the highest fuel efficiency of all the current turbines in the Pakistan market.  Steam Turbine is from Siemens and the Complex fuel efficiency on Gas is 51.2% and around 48.5% on HSD.  Again, the Complex efficiency is the highest in Pakistan market.  The cost of fuel is a pass through item as determined by our Regulator – National Electric Power Regulatory Authority (NEPRA).

Tariff

NEPRA has determined a Tariff for SPL for 30 years which is the tenor of the Power Purchase Agreement (PPA) with National Transmission & Distribution Company (NTDC).   The Tariff, under GOP Policy, gives a return of 15% IRR in US Dollar terms for the 30 year period.  Quarterly indexations are applied by NEPRA to ensure that US$/Pkrs parity and pertinent CPI/WPI parity is adjusted to account for the 15% return.

Total project cost of SPL is USD 246.873 m.

Agreements

SPL had signed the following agreements;

Power Purchase Agreement with NTDC for 30 years which determines the contractual terms of the sale and purchase of electricity between the two parties.
Gas Supply Agreement with SNGPL for 25 years
Implementation Agreement with Government of Pakistan which guarantees payments to the Company if defaulted by the Power Purchaser.
Financial documents with a Syndicate of nine banks where Habib Bank Limited is the Agent bank and United Bank Limited is the Monitoring bank. All borrowing is in Pak Rupees thus avoiding exchange rate exposure on debt servicing.
Operations and Maintenance contract with General Electric of USA for a tenor of approximately 18 years whereby GE is responsible for the entire plant operations.  SPL’s technical and commercial teams monitor GE’s operations and make significant contributions when required.
HSD Supply Agreement with Shell Pakistan for 30 years.
EPC Contract with China National Machinery & Import & Export Corporation (CMEC).  The warranty period with CMEC is expiring coming July and there have been no significant warranty issues.               
First year of plant operations

First operational year completed on April 29, 2011.  Performance of the plant was satisfactory while certain teething problems were addressed successfully during this period. Based on December 2011 accounts, Company expects to achieve its profit targets for the first operational year.
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SPWL -- Saif Power Limited
« Reply #3 on: August 21, 2014, 03:47:58 AM »
offer for sale cleared by exchange 13 august 2014
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Offline 007

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SPWL -- Saif Power Limited
« Reply #5 on: September 15, 2014, 12:39:36 AM »
 :tongue:

you beat me to it


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SPWL -- Saif Power Limited
« Reply #6 on: September 15, 2014, 01:17:08 AM »
:tongue:

you beat me to it

18-30 ki range hai book building mein
neechay miljae tu acha hai
still awaiting full accounts
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Offline genious.genio

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SPWL -- Saif Power Limited
« Reply #7 on: September 15, 2014, 11:27:24 AM »
:tongue:

you beat me to it

18-30 ki range hai book building mein
neechay miljae tu acha hai
still awaiting full accounts

IPO kab aa rhe ha??

Online MZ

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SPWL -- Saif Power Limited
« Reply #8 on: September 23, 2014, 06:02:14 PM »
Saif Power Limited 2nd OFS in September

Saif Power Limited (SPL), is all set to be listed at the Karachi Stock Exchange, offering 48.308 million shares in the price band (floor/cap) of Rs 18/share to Rs 30/share. SPL will be the second Offer for Sale (OFS) in power sector during the current month. The first phase of 75% of the total offering (36.231 million shares) will be offered to Institutional Investors and High Net Worth Individuals through book-building that would take place on September 30, 2014. Whereas in second phase, remaining 25% (12.077 million shares) will be offered to the general public at the Strike Price which will be determined through the Book Building Process. Under private Placement, 19.3235 million shares (5% of the paid up capital) at Rs 18/share have been sold and transferred. As per the detail, Allied Bank Limited (ABL) and Arif Habib Limited (AHL)  bought 13.889 million shares and 5.4345 million shares respectively at Rs 18/share.

The Company

SPL was incorporated in Pakistan on 11 November 2004 as a public limited company under the Companies Ordinance 1984. The Company operates a 225 MW combined cycle thermal power project, with a net capacity of 209 MW, under the government of Pakistan (GoP) power policy 2002 on build, own and operate basis in the Sahiwal District of Punjab. The principal sponsor of SPL is Saif Holding Limited (SHL), a holding company owned by Saif Group, one of the leading business conglomerates in Pakistan. The plant has an operation & maintenance team from General Electric USA. The plant operates on dual fuel, gas & HSD. NEPRA has determined a tariff for SPL for 30 years which is the tenor of the PPA. The tariff under GoP policy, gives an equity return of 18.5% in US$. Quarterly indexation are applied by NEPRA to ensure that US$/PKR parity and pertinent CPI/WPI parity is adjusted to account for the 18.5% return.

Robust rise in earnings foreseen

On the base of assumption, gas would be available in 10 months, we expect company to post decent growth of 28% in CY14 as company to earned profit of Rs 1,568 million (EPS: Rs 4.06)  in CY14 against Rs 1,225 million (EPS: Rs 3.17) in CY13 due to higher indexation factor and lower financing cost.

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Offline Dr. Economist

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SPWL -- Saif Power Limited
« Reply #9 on: September 24, 2014, 02:17:53 PM »
Accounts info..any detail?
SBM?

Offline JAWAD

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SPWL -- Saif Power Limited
« Reply #10 on: September 25, 2014, 10:48:44 AM »
:tongue:

you beat me to it

18-30 ki range hai book building mein
neechay miljae tu acha hai
still awaiting full accounts

sbm bhai whats your opinion should we go for it or not

Online MZ

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SPWL -- Saif Power Limited
« Reply #11 on: September 25, 2014, 04:21:08 PM »
AKD Daily
 
Saif Power Limited: New kid on the block

Saif Power Limited (SPL) is set to offer 48.3mn shares to the general public, HNWIs and institutional investors. Completing four years of operations, with a duel fuel (gas and HSD) fired, combined cycle power plant, operating under a 30yr PPA with the NTDC, SPL has exceptional fuel efficiency. While gas supply disruptions are the key risk, forcing SPL to switch onto expensive HSD, we believe the attractive valuation set on offer supports an investment case. In this regard, SPL has declared an interim dividend of PkR2/share to be paid to new shareholders which adds charm to the offering. Book building, which will set the price for the general public offering, will take place within a PkR18/share-PkR30/share range. While subscription even at PkR30/share (indicative CY14F P/E: 5.87x, D/Y: 11.7%), we believe superior shareholder value will arise from the middle band within book building (PkR23/share - PkR26/share).
The Company: SPL initiated commercial operations in Apr'10 under the 2002 Power Policy, operating a combined cycle, gas and HSD power plant with a capacity of 225MW (net 209MW), situated 15km northeast of Sahiwal. The principal owner, Saif Holdings Ltd. is owned by the Saif Group which has investments spanning telecommunications, textiles, oil & gas exploration and healthcare, amongst others. SPL operates at an efficiency of 51.2% on gas and 48.5% on HSD. Key agreement includes a 30yr PPA with the NTDC, 25yr Fuel Supply Agreement with SNGPL and 12yr agreement with Shell for HSD. While SPL maintains high plant availability, reaching 98% in 1HCY14, reduced dispatch to the NTDC resulted in utilization levels falling from 74% in CY10 to 41% in 1HCY14. As such, supply of gas remains the greatest threat to SPL's profitability as operating the plant on HSD vastly increases the cost of producing electricity (PkR18.8 per KwHr).
The Offer: Sponsors intend to divest 48.3mn shares, with book building to account for 75% (36.23mn shares) of the offer size, with the remaining 25% (12.07mn shares) to be disseminated through a general public offering. Under newly established rules, book building will take place on Sep 30'14 with a price band between PkR18/share and PkR30/share, with a minimum bid amount of PkR1mn and qualifying bids chosen through Dutch auction with the strike price, for the remaining public offering, determined through this process.
Result Review: SPL posted NPAT of PKR471.1mn (EPS: PkR1.22) in 2QCY14, up 91%QoQ due to drastically higher utilization (27% in 1HCY14 vs 55% in 2QCY14). In addition, SPL has declared an interim dividend of PkR2/share to be paid to new shareholders which adds charm to the offering. In CY13, SPL posted NPAT of PkR1.22bn (EPS: PkR3.17), lower by 16%YoY on reduced utilization (40% vs. 49% in CY12); however, CY13 dividend was robust at PkR3.5/share.
 
Boon in the middle band: Peer comparison indicates SPL is being offered at an attractive rate, with room for price appreciation even at the upper end of book building strike price (PkR30/share). Initial workings suggest SPL trades within a CY14F P/E range of 3.51-5.87 and D/Y range of 11.7%-19.4%. The latter compares favorably against a D/Y of 10% for HUBC and KAPCO. While acknowledging risks emanating from gas supply, we believe superior shareholder value will arise from the middle band within book building (PkR23/share - PkR26/share).

Offline genious.genio

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SPWL -- Saif Power Limited
« Reply #12 on: September 25, 2014, 04:31:16 PM »
AKD Daily
 
Saif Power Limited: New kid on the block

Saif Power Limited (SPL) is set to offer 48.3mn shares to the general public, HNWIs and institutional investors. Completing four years of operations, with a duel fuel (gas and HSD) fired, combined cycle power plant, operating under a 30yr PPA with the NTDC, SPL has exceptional fuel efficiency. While gas supply disruptions are the key risk, forcing SPL to switch onto expensive HSD, we believe the attractive valuation set on offer supports an investment case. In this regard, SPL has declared an interim dividend of PkR2/share to be paid to new shareholders which adds charm to the offering. Book building, which will set the price for the general public offering, will take place within a PkR18/share-PkR30/share range. While subscription even at PkR30/share (indicative CY14F P/E: 5.87x, D/Y: 11.7%), we believe superior shareholder value will arise from the middle band within book building (PkR23/share - PkR26/share).
The Company: SPL initiated commercial operations in Apr'10 under the 2002 Power Policy, operating a combined cycle, gas and HSD power plant with a capacity of 225MW (net 209MW), situated 15km northeast of Sahiwal. The principal owner, Saif Holdings Ltd. is owned by the Saif Group which has investments spanning telecommunications, textiles, oil & gas exploration and healthcare, amongst others. SPL operates at an efficiency of 51.2% on gas and 48.5% on HSD. Key agreement includes a 30yr PPA with the NTDC, 25yr Fuel Supply Agreement with SNGPL and 12yr agreement with Shell for HSD. While SPL maintains high plant availability, reaching 98% in 1HCY14, reduced dispatch to the NTDC resulted in utilization levels falling from 74% in CY10 to 41% in 1HCY14. As such, supply of gas remains the greatest threat to SPL's profitability as operating the plant on HSD vastly increases the cost of producing electricity (PkR18.8 per KwHr).
The Offer: Sponsors intend to divest 48.3mn shares, with book building to account for 75% (36.23mn shares) of the offer size, with the remaining 25% (12.07mn shares) to be disseminated through a general public offering. Under newly established rules, book building will take place on Sep 30'14 with a price band between PkR18/share and PkR30/share, with a minimum bid amount of PkR1mn and qualifying bids chosen through Dutch auction with the strike price, for the remaining public offering, determined through this process.
Result Review: SPL posted NPAT of PKR471.1mn (EPS: PkR1.22) in 2QCY14, up 91%QoQ due to drastically higher utilization (27% in 1HCY14 vs 55% in 2QCY14). In addition, SPL has declared an interim dividend of PkR2/share to be paid to new shareholders which adds charm to the offering. In CY13, SPL posted NPAT of PkR1.22bn (EPS: PkR3.17), lower by 16%YoY on reduced utilization (40% vs. 49% in CY12); however, CY13 dividend was robust at PkR3.5/share.
 
Boon in the middle band: Peer comparison indicates SPL is being offered at an attractive rate, with room for price appreciation even at the upper end of book building strike price (PkR30/share). Initial workings suggest SPL trades within a CY14F P/E range of 3.51-5.87 and D/Y range of 11.7%-19.4%. The latter compares favorably against a D/Y of 10% for HUBC and KAPCO. While acknowledging risks emanating from gas supply, we believe superior shareholder value will arise from the middle band within book building (PkR23/share - PkR26/share).

30th sep ko to book buiding ha... IPO dates kab ha???

Offline 007

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SPWL -- Saif Power Limited
« Reply #13 on: September 25, 2014, 05:41:25 PM »
apply karain book building main ?

Offline JAWAD

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SPWL -- Saif Power Limited
« Reply #14 on: September 25, 2014, 09:35:26 PM »
apply karain book building main ?

m going for it

Offline tariqhafeez

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SPWL -- Saif Power Limited
« Reply #15 on: September 25, 2014, 10:05:36 PM »
saif power is good for short term .  However , the real risk is fuel availability .  Gas will remain scarce in winter which is round the corner .  Govt is under extreme pressure so the gas allocation to consumers at homes will be first priority. Even in summer, due to very high industrial demand, it is not very easy for govt to allocate uninterrupted supply of gas as there are many competing industries which need gas to operate their plants.

However plant is quite efficient and good.  Tariff is also good.  Circular debt is also a big risk.  As WAPDA only pays those IPPs which they want to utilize too frequently.  However, as gas is scarce the receivables of saif power will remain stuck for months.

With LNG coming in the system, IPPs like saif power will benefit a lot.  However, it is still not certain when that will happen. 

Offline 007

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SPWL -- Saif Power Limited
« Reply #16 on: September 26, 2014, 12:05:39 AM »
what is the max price on should pay for it

Offline SBM

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Offline SBM

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SPWL -- Saif Power Limited
« Reply #18 on: September 26, 2014, 01:24:00 AM »
what is the max price on should pay for it

For me 24-26 looks good range to buy..
They have very poor utilization history
Its main trigger over coming years will be LNG related news
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Offline dhoom

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SPWL -- Saif Power Limited
« Reply #19 on: September 26, 2014, 02:45:18 AM »
i think don't invest in power sector, lal pir pak gen earing and capacity is same and same dividend