Omani Power Firms Set To Double Profits After Share Offer

Posted by Joseph R. Fonseca
Sunday, May 11, 2014
Logos

 

Oman's Al Batinah Power Co and Al Suwadi Power Co, which launched twin initial public share offers on Sunday and are owned by the same consortium, will double their profits from 2014 to 2018 as they pay off start-up costs, a top executive said.

The firms, whose owners aim to raise a combined 62.7 million rials ($163 million) through the sale of 35 percent of each company, together provide just over a quarter of the electricity for Oman's main power grid - around the capital, Muscat.

The companies were required to go public and list on the sultanate's bourse under the terms of their licences, having launched operations in April 2013.

"If people are looking for robust and very predictable dividends this is a nice opportunity," said Przemek Lupa, chief executive of Al Suwadi Power and project manager for the two IPOs, told Reuters. "We're profitable."

Al Suwadi's net profits will rise to 10.9 million rials in 2018 from 4.8 million rials this year, according to the IPO prospectuses, while Al Batinah's profits will rise to 10.3 million rials from 4.6 million rials over the same period.

Their earnings before tax, interest, depreciation and amortisation will remain steady at around 30 million rials a year while finance charges from constructing the plants reduce over time.

They have supply contracts with Oman until 2028.

According to IPO documents, this will enable the companies to offer subscribers an average annual dividend yield of 8.1 percent over the next five years. Dividends will be paid twice yearly, with the first dividend planned for June.

Al Batinah is selling 236.2 million shares at 0.128 rials per share, for a total of 30.2 million rials.

Al Suwadi is the larger of the two IPOs, offering 250 million shares at 0.13 rials per share, which would raise 32.5 million rials if fully subscribed.

Bank Muscat is acting as financial adviser and lead manager on both flotations.

In the IPOs, 65 percent of the shares are reserved for retail investors, with the remainder for institutions and wealthy individuals making orders of more than 600,000 shares.

Should the retail or institutional tranches be undersubscribed any extra subscriptions in the other part can be utilised to meet the shortfall. There are no restrictions on foreign participation, although no person or entity can acquire more than a 3.5 percent stake in each company through the IPO.

The companies' shareholders will sell shares in the IPOs on a proportional basis.

This means French utilities group GDF Suez's holding will fall to 30 percent from 46 percent, while that of local firm Suhail Bahwan Group will drop to 14 percent from 22 percent.

Two Japanese investors, Sojitz Corp and Shikoku Electric Power Co, will cut their respective stakes to 7 percent from 11 percent, with Oman's state pension fund also reducing its holding to about 7 percent from 10 percent.

The offers run from May 11 to June 9 and the companies expect to list on June 23.

(Reporting by Matt Smith; Editing by Greg Mahlich)

($1=0.3850 Omani rials)


Contracts

ACE Winches Bags Order from Vard

Deck machinery specialist ACE Winches said it has been awarded a spooling contract with Vard Group AS for Norway’s largest construction vessel.   The scope of work includes the spooling of two 3,

Fugro, US Army Corps of Engineers Ink Mapping Deal

Fugro has been awarded a photogrammetric and LIDAR surveying and mapping contract by the U.S. Army Corps of Engineers, St. Louis District, Missouri. The agreement

Nakilat Upgrades VSAT Service for LNG/LPG Fleet

Nakilat, the shipping arm of Qatar’s liquefied natural gas sector, has entered into a contract with Global Eagle Entertainment Inc.’s Emerging Markets Communications

Legal

Philippines: Sea Dispute Won't Shift Ties with China, U.S.

The Philippines' territorial dispute with China over the South China Sea has not caused Manila to rebalance diplomatic ties with either its ally, the United States,

Hanjin Shipping to Submit Self-Rescue Plan

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media.

US Coast Guard Announces Final TWIC Rule

The U.S. Coast Guard announced Tuesday the publication of the final rule concerning Transportation Worker Identification Credential (TWIC) reader requirements. The

Finance

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Energy

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Canada May Ask Far-offshore Drillers to Pay Extra

Canada may ask oil companies to contribute to the hundreds of millions of dollars or more the country has to pay to an international body if they drill far offshore,

Höegh LNG Speeds up FSRU Conversion

Höegh LNG Holdings Ltd. today announced that it has signed agreements with Wärtsila Oil and Gas (EPCIC regas) and Moss Maritime (engineering) for its first FSRU conversion project,

News

US Navy Ships Conduct Astern Replenishment-at-sea

“While replenishments-at-sea are routine, astern refueling is unique and requires precise navigation and coordination,” said Lt. Cmdr. Jason Ileto, fleet replenishment scheduler for Commander,

US Offshore Lease Sale Yields $18 Mln in High Bids

Today’s U.S. oil and gas Lease Sale 248 garnered $18,067,020 in high bids for 24 tracts covering 138,240 acres in the Western Gulf of Mexico Planning Area, announced

Another Hurdle for The Ocean Alliance

Commissioner William P. Doyle of the U.S. Federal Maritime Commission today voted in favor of requesting additional information from The Ocean Alliance parties.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1452 sec (7 req/sec)