I don't understand why people think the company should tell them exactly how much profit they are making per month. No company does that not even the biggest, they report quarterly. VOG is nowhere near big enough to warrant the expense of quarterly financials, and wanting monthly updates is just nonsense. They have given an update on the scuff usage and will continue to update the market when appropriate with new connections and more scuff usage figures. We can al assess roughly the amount of money coming in but do not know the expenditure figures, so speculating is a waste of time. Just wait until the year end and see where we are. I sometimes wonder if some of you have even the faintest grasp of business.
And while on the subject of gas powered gensets this article may be of interest although not Cameroon specific:
‘Gensets aiding economic growth in Africa’ Friday, 19 June 2015
"In 2014, Nigeria imported a total of 28,678 genset units totalling to US$185.5mn, as per data provided by PowerGen Statistics"
"“The recent discovery of gas fields in East Africa is generating interest in using gas as an electricity feedstock instead of diesel. Since the running costs of gas generators are lower than diesel generators, market participants stand to be increasingly affected by this development,” research firm Frost & Sullivan indicates."
Continued growth in genset markets
The sales of products in the global generator market have been particularly strong in regions which have an unreliable electricity supply, such as countries in Africa and Asia. There have recently been a large number of power cuts across South Africa and Ghana, which have greatly affected both businesses and individuals operating in these countries.
South Africa has been particularly badly affected by power shortages in recent months, with South African electric public utility Eskom announcing plans for rolling blackouts in order to undertake repair work on several of their damaged generators.
The global generator market is seeing a rise in adverse weather conditions and new and improved generator technologies boost its growth prospects. As the energy infrastructure in developing countries remains poor on the whole it is expected that generators will be required for the foreseeable future.
The rise of natural gas gensets
Natural gas (NG) generator sets (gensets) are reciprocating internal combustion engines that are used worldwide for distributed power production. Despite a short-term slowdown due to volatility in the oil and gas market, the NG genset market is expected to show healthy growth during the next 10 years. As a source of emergency standby, prime, peaking, or continuous power, NG-fuelled gensets are poised for rapid growth, particularly in markets where inexpensive NG is widely available.
Annual natural gas (NG) genset installations are expected to reach 27.2GW by 2024 and generate US$146.8bn in cumulative revenue between 2015 and 2024, according to a report published by Navigant Research.
Gas gensets easily comply with environmental regulations by producing greater amounts of electricity through highly efficient, decentralised natural gas combined heat and power (CHP) systems. Gas property as a clean burning fuel coupled with genset advantages such as lower noise, quicker permit obtention, and reduced capital costs make gas gensets the ideal choice for end users across segments.
This is especially so in emerging countries like in East Africa, which do not have access to adequate reserves of gas and lack the necessary infrastructure to pipe gas from other regions. The widening demand
It would seem logical that more companies (like Guinness, Icrafon, SCTB & CAMLAIT have done) will be interested in having their own gensets supplied by VOG's gas.
Cameroon Economy Suffers Through Power Failures Moki Edwin Kindzeka June 19, 2015
"30 percent on the grid
Due to underdevelopment, only 30 percent of the population is connected to the electricity grid.
More than 70 percent of Cameroon's current energy supply comes from traditional biomass fuels and the potential of huge gas reserves remain to be explored.
Cameroon has an estimated 12,000 megawatts of hydroelectric potential, but only a fraction of it has been developed.
Peter Ghogomo, technical director of the nation’s main energy provider, British-owned Energy of Cameroon, ENEO, blames the problems on poor rainfall.
"We have a problem of the poor hydrology. No rains. Many people turn to say, ‘Oh, there is rain in Douala,’ and so on. But the rains in Douala go directly into the sea and do not pass through the (turbines)," Ghogomo said.
He said the company also is performing preventive maintenance on equipment. "We must have to do this preventive maintenance. Better suffer now, so that in future, you will have better quality of service."
But lawmaker Njong Evaristus placed the blame squarely on ENEO management for failing to deliver.
"The paradox about it all is that at the heart of the rains, we are talking about the turbines not turning. It is not true, it is not true. The issue is that of lack of management, the issue is that the equipment is obsolete," Evaristus said.
In the meantime, businesses in the nation’s economic hub said they are suffering as a consequence.
Prince Galega is one of countless Douala businessmen who have been waiting for weeks at the busy port for his container to clear. Because of the outages, he can’t pay and claim his container.
"When you have to pay some of the charges, sometimes you go and they will say there is no power and you have to stop and probably wait for one day or two days, waiting for the current (electricity)," Galega said."
The problem with just doing the maths is that we have absolutely no idea what the outgoings are. I vaguely remember some hint some time ago that VOG was spending a small fortune on the West Med on roads etc for example and wonders how much was spent (and borrowed) until it was decided to moth ball this for the time being. How much money is going to be spent contracting out the processing work now that VOG own it? Are we going to expand the plant and how much will this cost? Are we planning on doing some drilling for gas or for oil for that matter? What happens if we don't have enough gas to supply to the power stations? When do we demand payment for the gas, someone has mentioned that some companies don't pay their bills for over 100 days at a time, what effect does this have on cash flow? I say 'we' and of course I mean VOG, as I am prepared to trade in and out of this stock. Is the Beauforts broker right in thinking that this company will be re-rated at between 500 to 1000 milllion pounds? I have my auto sell set for £11 a share is this realistic on just wishful thinking? Yes I know don't ask that last question.
That's not correct. A certain amount of gas is sold to Guinness and others for self generation. The details of pricing have never been revealed. Also gas is priced per btu. There is a scuff - BTU conversion factor which was published in FAQ's a couple of years ago as +6 %. Is it still so. Do you know? As the slightly arrogant fountain of wisdom on here I presume you do. Perhaps you would enlighten us all.
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