Chilime and arun valley hydro power

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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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  • Chilime Hydropower and Arun Valley Company Limited develops and supplies hydroelectric energy.
  • Chilime and arun valley hydro power

    1. 1. Financial Analysis of Chilime and Arun Valley Hydro Presenters: Anzu Koirala Gaurav Ojha Ram Neupane Ramesh Aryal
    2. 2. Introduction of Hydropower Development Policy in 1991 and Electricity Act in 1993 opened new avenues for private sector to invest in hydroelectric projects
    3. 3. 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.
    4. 4. 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.
    5. 5. Chilime Hydopower: A Financial Overview
    6. 6. 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.
    7. 7.  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.
    8. 8. Share Ownership Genaral Public 49% NEA 51%
    9. 9. Arun valley Hydro Kabeli A: 25MW Lower Phemekhola: 35 MW Lower Pimuwakhola: 11MW Upper Khimti: 12MW
    10. 10. Income Generation Net Income 45 40 35 30 25 net income 20 15 10 5 0 2062/63 2963/64 2064/65 2065/66
    11. 11. Net Worth Net Worth 250 200 150 net worth 100 50 0 2062/63 2963/64 2064/65 2065/66
    12. 12. 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
    13. 13. Company’s Capital Structure
    14. 14. Market price 600 500 400 300 market price 200 100 0 2065/66 2066/67 2067/68 2068/69
    15. 15. Comparative Analysis
    16. 16. 1. Profitability status Profitability ratio Chilime Arun ROA 0.201 0.101 ROE 0.206 0.153 Profit Margin 0.95 0.52 2. Capital Structure Rs.726.9 million of Chilime versus Rs.226.56 million of Arun valley.
    17. 17. 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 Chilime Arun 2065/66 2066/67 EPS 102 106 DPS 60 70 Shareholders 7.296m 8.256m EPS 28.97 9.83 DPS 40 47.13 Shareholders 1.2m 2.401m
    18. 18. Thank you

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