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)

Maritime Reporter June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

New Australian Navy Submarines to be Japan Built?

Australia should discuss building its next-generation fleet of submarines overseas, the Department of Defence said on Monday, a shift that could open the door to

Russian Navy Expansion Gathers Momentum

The Russian Navy celebrates its professional holiday by putting two new submarines into service and expects a new warship in the fall and several additional ships

Three Share in Navy US$96.8-M Twin-Ship Modernization Contract

The U.S. Department of Defense informs that AMSEC LLC; CDI Marine Co. LLC; and Q.E.D. Systems Inc., (all located in Virginia Beach, Virginia) are each being awarded a cost-plus-fixed-fee/cost-only,

Legal

Tanker with Iraqi Kurdish Oil Anchors off Texas Port

A tanker carrying crude oil from Iraqi Kurdistan was anchored near the Port of Galveston, Texas, and must undergo a routine safety inspection by the U.S. Coast

Panama's Alfonso Castillero Moves to Liberian Registry

The Liberian Registry informs that Alfonso Castillero, former Director-General of the Panama Registry, has joined their organization as Vice-President. Castillero

BV Group Launches Maritime Pilot Phase

Bureau Veritas Group Launched Maritime Pilot Phase for its Single Window for Foreign Trade in Togo. The ceremony took place in Lomé, under the patronage of the President of the Republic,

Finance

Cummins Reports Revenue Jump in Q2 2014

Cummins Inc. reported its results for the second quarter of 2014. According to the report, second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013.

GPA Sets Tonnage Record

The Georgia Ports Authority moved more than 29 million tons of cargo, 3 million twenty-foot equivalent container units (TEUs) and more than 700,000 auto and machinery units in Fiscal Year 2014.

Diana Shipping Invests in Diana Containerships

Diana Shipping Inc., a global shipping company specializing in the ownership of dry bulk vessels, has announced that it has entered into an agreement to purchase

Energy

Valemon Topsides Installed

On Monday, July 28, the topsides were lifted into place on the steel jacket on the Valemon field in the North Sea. Produced by Samsung Heavy Industries this is

Tripoli Airport Ablaze, Rockets Leave Libya in Chaos

Diplomats flee Libyan chaos; Politicians appeal for international intervention. Clashes in Tripoli, Benghazi kill around 160 over two weeks, while Libyan capital face fuel, power shortages.

Europe Sleep Walking into an Energy Crisis: Analyst

The downing of flight MA17 has prompted calls for further sanctions on Russia targeted at its energy sector. Douglas-Westwood in its 'DW Monday' analysis considers

News

SCI Publishes Shore Leave Survey

With Maritime Labor Convention (MLC), 2006 in force, one might expect to see a reduction in the number of seafarers without visas; yet, recent data collected by

Cummins Reports Revenue Jump in Q2 2014

Cummins Inc. reported its results for the second quarter of 2014. According to the report, second quarter revenue of $4.8 billion increased 7 percent from the same quarter in 2013.

GPA Sets Tonnage Record

The Georgia Ports Authority moved more than 29 million tons of cargo, 3 million twenty-foot equivalent container units (TEUs) and more than 700,000 auto and machinery units in Fiscal Year 2014.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.3634 sec (3 req/sec)