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A presentation on the comparision of financial health of two major hydro projects of Nepal: Chilime Hydro and Arun Valley Hydro Power
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Financial Analysis of Chilime and Arun Valley Hydro
Presenters:Anzu KoiralaGaurav OjhaRam NeupaneRamesh Aryal
Introduction of Hydropower Development Policy in 1991 and Electricity Act in 1993 opened new avenues for private sector to invest in hydroelectric projects
Chilime Hydropower
Chilime Hydropower Company Limited (Chilime) was incorporated in 1995 with an objective of hydroelectricity generation through optimal utilization of resources within the country.
Located in Rasuwa district and it owns and operates 22.1 MW power plant commissioned on August 25, 2003
It sales bulk electricity to NEA at the long term Power Purchase Agreement (PPA) price
Chilime, through its three subsidiaries, is developing four hydropower projects with aggregate capacity of 270.3 MW.
Arun Valley
Arun Valley Hydropower Development Company Limited was established in 1997.
The company is converted into public limited company in August 2005. The company floated 30% of its share to public.
It own Piluwakhola Hydropower Project (3MW).
The company has signed Power Purchase Agreement (PPA) with Nepal Electricity Authority on 23 January 2000.
The company is also planning to develop multi-purpose projects that will include any combination of hydro, irrigation, drinking water, flood control, fishery, and so on.
Chilime Hydopower: A Financial Overview
Contd……
Total financing cost of Chilime at the time of completion of its project in Rasuwa was Rs 2.5 billion.
Rs 960 million was financed through equity investment, rest of the amount was collected from borrowings.
Paid back its loan within 3 years. Now it has paid up capital of Rs 1.35 billion. Is investing around Rs 7 billion in four projects
within the course of the next five years.
Had made a net profit of Rs.777.43 million in fiscal year 2009/2010.
Again made a net profit of Rs. 843.14 million in fiscal year 2010/2011.
During the last fiscal year of 2009/2010 dividends were not given..
This fiscal year of 2010/2011 dividends of Rs.495.36 millions were paid away.
NEA51%
Genaral Pub-lic
49%
Share Ownership
Kabeli A: 25MWLower Phemekhola: 35 MWLower Pimuwakhola: 11MWUpper Khimti: 12MW
Arun valley Hydro
Income Generation
2062/63 2963/64 2064/65 2065/660
5
10
15
20
25
30
35
40
45
Net Income
net income
Net Worth
2062/63 2963/64 2064/65 2065/660
50
100
150
200
250
Net Worth
net worth
Financial Indicators
Financial Indicators
2062/63 2063/64 2064/65 2065/66
Net worth per share
133.57 150.31 184.83 188.8
Earnings per share
25.49 31.74 34 29
Company’s Capital Structure
Market price
2065/66 2066/67 2067/68 2068/690
100
200
300
400
500
600
market price
Comparative Analysis
Profitability ratio
Chilime Arun
ROA 0.201 0.101
ROE 0.206 0.153
Profit Margin 0.95 0.52
1. Profitability status
2. Capital StructureRs.726.9 million of Chilime versus Rs.226.56 million of Arun valley.
3. Capital Composition
Both companies were established with 2/3 of debt but right now only Arun Valley has the debt in the capital structure
4. EPS DPS and number of shareholders
Fiscal Year 2065/66 2066/67EPS 102 106DPS 60 70Shareholders 7.296m 8.256mEPS 28.97 9.83DPS 40 47.13Shareholders 1.2m 2.401m
Chilime
Arun
Thank you