Sector - Power & Energy

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SHARK
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Re: Sector - Power & Energy

Postby SHARK » Sun Oct 01, 2017 11:07 pm

Please ensure to refer additional guidance such as DY, Debt To Equity and 5Yr average ROEs.
Do not solely depend on looking at the above table.
Price is what you pay. Value is what you get.”

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Re: Sector - Power & Energy

Postby Edmond » Sun Oct 01, 2017 11:30 pm

SHARK wrote:Please ensure to refer additional guidance such as DY, Debt To Equity and 5Yr average ROEs.
Do not solely depend on looking at the above table.


Thx for the chart.

VPEL & PAP looks good. Personally I like VPEL due to constant dividends policy.

Further I like to wait till get the crowed attention also.... :-w

Cheers..

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Re: Sector - Power & Energy

Postby SHARK » Sun Oct 01, 2017 11:34 pm

due to high dividend pay out we see its net book value has reduced.
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Re: Sector - Power & Energy

Postby Beginner » Sun Oct 01, 2017 11:35 pm

Thanks Shark

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Re: Sector - Power & Energy

Postby Edmond » Sun Oct 01, 2017 11:40 pm

SHARK wrote:due to high dividend pay out we see its net book value has reduced.


Yes, it is good if they hold & invest some money for their future expansion as this is promising sector.

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Re: Sector - Power & Energy

Postby SHARK » Fri Oct 06, 2017 7:33 am

Minister of Petroleum Resources Development Arjuna Ranatunga stated that the Ceylon Petroleum Corporation will not raise their fuel prices should Lanka IOC choose to do so.

Arjuna Ranatunga further stated that he had advised Lanka IOC officials not to raise the fuel prices within Sri Lanka following discussions held with the Ministry of Finance.

The Minister further stated that the CPC should come forward to service the public even if losses are incurred should Lanka IOC take a decision to raise their fuel prices.

“I feel that the fuel prices cannot be raised even though there is a pressing need to do so. Raising the fuel prices will only be an added burden to the general public.” The Minister said.

Arjuna Ranatunga further stated that the government should not allow foreign forces to dictate terms to the general populace.
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Re: Sector - Power & Energy

Postby SHARK » Fri Oct 06, 2017 7:35 am

Very Interesting LAST LINE by Arjuna.
Why he say Foreign Forces ?
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Re: Sector - Power & Energy

Postby StockFlashSL » Fri Oct 06, 2017 8:26 am

What if lioc only raise diesel prices. As diesel is sold at a lost and that lost is covered by petrol. Everyone will come to cpc to pump diesel, making cpc losses go up. Lioc will sell more of profitable petrol.

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Re: Sector - Power & Energy

Postby dhanurrox » Fri Oct 06, 2017 8:53 am

StockFlashSL wrote:What if lioc only raise diesel prices. As diesel is sold at a lost and that lost is covered by petrol. Everyone will come to cpc to pump diesel, making cpc losses go up. Lioc will sell more of profitable petrol.

Lost= loss

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Re: Sector - Power & Energy

Postby StockFlashSL » Fri Oct 06, 2017 8:58 am

dhanurrox wrote:
StockFlashSL wrote:What if lioc only raise diesel prices. As diesel is sold at a lost and that lost is covered by petrol. Everyone will come to cpc to pump diesel, making cpc losses go up. Lioc will sell more of profitable petrol.

Lost= loss


=)) thanks

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Re: Sector - Power & Energy

Postby HobbyInvester » Fri Oct 06, 2017 2:39 pm

If CPC don't raising the fuel prices, CPC will loose further and add more burden to the general public.
If government don't want to add more burden to the general public why government raised LPG Gas price and impose more taxes?

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Re: Sector - Power & Energy

Postby SHARK » Fri Oct 06, 2017 2:44 pm

StockFlashSL wrote:What if lioc only raise diesel prices. As diesel is sold at a lost and that lost is covered by petrol. Everyone will come to cpc to pump diesel, making cpc losses go up. Lioc will sell more of profitable petrol.



You are correct SF. They might loose few customers, but they will find a way to mitigate the staggering loss.
the quarter in my opinion would not that good.

This is a LT investment.

a definite winner....

look at the plantation stocks 1 year before and now....

so LIOC will recover :-bd
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Re: Sector - Power & Energy

Postby Contra » Sat Oct 07, 2017 4:39 am

We should not ignore single sector in the CSE. Suddenly there can be momentum. Best thing to do is keep selected sectors and stocks under our radar. Buying companies when they are out of favour is one of the safest strategy as long as they have mid and long term growth.
Company, stock market, politics and the economy are four different things.

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Re: Sector - Power & Energy

Postby SHARK » Sat Oct 07, 2017 10:19 am

absolutely correct contra. shares may look jaded. but ..... i am looking what are their future growth propects... will they stagnate, be out of business or their is greater opportunity in the future.

i have identified by looking at the sector - LGL, LIOC, VPEL to deliver capital gains + dividend income to its share holders.

as the country is moving forward and the GOSL to make it a HUB... for its entire region... there will be more demand for the business they are in.

short term hiccups are unavoidable.

good companies with sound management will adapt along the way .... and will prosper.

those companies dont adapt will fall apart.
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Re: Sector - Power & Energy

Postby stocks hunter » Sat Oct 07, 2017 10:36 am

Exclusive: Sri Lanka rejects Chinese request for local fuel sales

Sri Lanka has blocked a proposal by Chinese firms bidding to build the island's biggest oil refinery to sell fuel locally, fearing a threat to domestic firms that dominate the small but growing market.
The veto is the latest in a tussle over Chinese investments in Hambantota, a southern town near an important shipping route, where China controls the sea port and plans an industrial zone for Chinese firms and a $3 billion refinery with annual output of around 5 million tonnes.

China Huanqiu Contracting & Engineering Corp, a subsidiary of state-owned China National Petroleum Corp, and private refiner Shandong Dongming Petrochemical Group have jointly bid for the refinery located near the port.

Government spokesman Rajitha Senaratne said the Chinese companies had asked to sell refined products on to the local market, but had been told just to export.

"The Chinese companies asked permission (to supply local markets), but we did not give them permission. We asked them to participate in tenders of local suppliers, if they want to sell locally," he told Reuters.

Another government official, who didn't want to be named as he is not authorized to speak to the media, said Sri Lanka did not want to cede control of the local fuel market to Chinese firms.

Sri Lanka's $6 billion market is controlled by state-run Ceylon Petroleum Corp and Lanka IOC (>> Lanka IOC Limited), a subsidiary of Indian Oil Corp (>> Indian Oil Corporation Limited).

"We have asked the Chinese firms to go for partnership with existing players if they want to sell their products in the local market," the official said. "We don't want both our companies to suffer by letting another player in."

The two Chinese companies seeking local market access did not respond to a Reuters request for comment.

Hambantota is part of China's vast Belt and Road initiative to build trade and transport links across Asia and into Europe, but Beijing's widening footprint has raised concerns in India, the United States and even Europe.

New Delhi sees the massive investment in the port town as another sign of the threat of China's growing influence in the region. Even in Sri Lanka, the plan has been criticized for the loss of land and, more broadly, the tiny nation's sovereignty.

This year, Sri Lanka revised the terms of its deal with China Merchants Port Holdings (>> China Merchants Port Holdings Co Ltd), which has a 99-year lease on the Hambantota port, to give greater influence to a local state-run partner.

A Chinese source in Colombo briefed on the refinery discussions said the two Chinese firms had made an informal request for the refinery's products to be sold locally, but had been told by the Sri Lankan authorities that such a move could spark demonstrations by local trade unions.

For the moment, the Chinese source said, the refinery deal was going forward.

The two Chinese firms began exploring the possibility of building the refinery 18 months ago, and private refiner Dongming is looking to take a controlling stake, officials from the companies said.

(Additional reporting by Chen Aizhu in Beijing and Ranga Sirilal in Colombo; Editing by Sanjeev Miglani and Ian Geoghegan)

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Re: Sector - Power & Energy

Postby SHARK » Fri Oct 27, 2017 11:07 pm

The Asian Development Bank’s (ADB) Board of Directors has approved a loan of $200 million with sovereign guarantee for Ceylon Electricity Board to develop Sri Lanka’s first 100-megawatt wind park.

“The new Wind Power Generation Project will not only provide access to a clean and reliable power supply in Sri Lanka, but also create an environment for further wind power development through future public-private partnerships,” said Mukhtor Khamudkhanov, an ADB Principal Energy Specialist. “Diversifying the country’s power generation through clean, renewable energy sources will improve the country’s energy security and environment.”

Sri Lanka boosted its national electrification from 29% in 1990 to more than 99% in 2016. Yet the power sector continues to struggle to meet the growing demand for an affordable and reliable electricity supply.

With the share of thermal (coal and oil-fired) power still accounting for two-thirds of power generation in 2016, there is an urgent need to develop clean energy sources such as wind and solar energy, reduce losses in the system, and boost energy efficiency.

While the remaining third of total generated power in 2016 was from renewable sources, most of this was accounted for by large hydropower facilities. Only about 8% comes from nonconventional renewable energy sources such as mini hydro, wind, solar, and biomass. The country’s goal is to increase the share of these nonconventional renewable energy sources to about 20% of the total generated power by 2020.

Besides the wind farm, to be constructed on Mannar Island in Northern Province, the project will provide the associated infrastructure, such as internal cabling and access roads, energy dispatch control center, and reactors to manage voltage levels.

More generally, the project will also establish the procedures to enable the Ceylon Electricity Board—the executing and implementing agency for the project—to act as a wind park developer that can attract the private sector in future wind power generation. These include establishing cost benchmarks and conducting competitive bidding for future wind power projects, and managing the flow of intermittent wind energy through the power system.

The Ceylon Electricity Board will provide $56.7 million toward the total project cost of $256.7 million. The estimated completion date for the project is the end of 2021.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in co-financing.
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Re: Sector - Power & Energy

Postby PAT » Sun Mar 18, 2018 12:20 am

SL mulls building nuclear power plant

A feasibility study to build the first ever nuclear power plant in the country will commence shortly, a senior official of the Ministry of Power said.

The study will be completed within a year and a decision will be taken thereafter regarding the power plant, he said.

“Sri Lanka is seriously looking at constructing a nuclear power plant. We are studying the feasibility of developing a nuclear power plant in the country which is very important to reduce the cost of electricity in the country,” Power and Renewable Energy Ministry Secretary Dr. B.M.S. Batagoda said. The cost of electricity in Sri Lanka is the highest in the region.

“Nuclear is one of the cheapest power sources in the world. Many countries use this technology and safety is not a concern any more. Since Sri Lanka imports 100 percent of its power materials such as coal, diesel and fuel, the energy cost is high. Therefore, I believe that a nuclear power plant is one of the most economical options for the country,” he said.

Among the other benefits from a nuclear power plant will be the reduced cost of energy which will result in a lower cost of production.

“This will help the manufacturing and the services sectors to be more competitive and also will increase the competitive edge in the global market. The benefit will be trickle down to the entire spectrum of the economy thereby increasing the efficiency and productivity in fuelling the economic growth,” he said.

Countries such as India, Bangladesh and Pakistan have aggressively build nuclear power plants and it should be noted that Bangladesh has the world’s highest dense population. It has build large nuclear power plants in the major cities. The oil rich Middle Eastern countries including Arab Emirates and Abu Dabi also have build nuclear power plants despite having abundance of oil. They build these power plants to reduce the cost of power and stabilise the economy.
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Re: Sector - Power & Energy

Postby SHARK » Sun Mar 18, 2018 1:24 am

A good move if carried out ! people will protest as usual and delays encountered srilanka land like no other :D
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Re: Sector - Power & Energy

Postby SHARK » Thu Apr 26, 2018 3:42 pm

Sri Lanka takes key step to help market price electricity

ECONOMYNEXT - Sri Lanka's state-run Ceylon Electricity Board has set up a costing account that will make, generation, transmission and distribution transparent and will help quickly assess costs to help market price electricity.

Damitha Kumarasinghe, Director General of the Public Utilities Commission of Sri Lanka' which regulates the power sector said a 'bulk supply transactions' account which shows real time settlements between generators, the transmission operator and distributors had been approved.

The BST account is a key requirement in a tariff methodology worked out in December 2015.

Setting up a settlement account to assess costs quickly was a structural benchmark in an economic program with the International Monetary Fund. The original December 2016 benchmark was later deferred to March 2018.

The cabinet of ministers are expected to approve a pricing formula for fuel also shortly ahead of a completion of an ongoing review of the program.

The inability to market-price power and electricity in time has triggered losses at state-run Ceylon Electricity Board and Ceylon Petroleum Corporation, which were then funded by bank credit which tend to push up interest rates.

If the central bank then prints money to keep rates down, the rupee then comes under pressure.

Sri Lanka has sharply cut taxes on fuel over the last six months as fuel prices rose.

The central bank in April printed tens of billions of rupees through reverse repo auction to bring overnight interest rates which suddenly rose to 8.50 percent levels to around 7.90 percent amid more money printed to accommodate a New Year cash demand.
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