Caucasus Energy & Infrastructure
Fact Sheet Q1, 2009
Share Data, as of 31-Mar-2008
Authorized shares, mln Outstanding shares, mln Price per share, GEL GSE ticker Price change, since the IPO 70.0 24.2 1.60 NRGY 0.0% 38.7 23.2
Company Overview
CEI focuses on greenfield investments in small and medium-sized hydro power plants (HPP) and electricity transmission lines in Georgia The company has the license and is currently working on the construction of 42 MW Mtkvari HPP in South Georgia.
Key Facts
Domicile – Georgia Status – Joint Stock Company
Mcap, GEL mln Mcap, US$ mln
Price Per Share
Investment advisor – Galt & Taggart Asset Management Registrar – JSC Kavkasreestri
GEL 3.0 2.0 1.0 0.0 Feb-08 Jun-08 Nov-08 Mar-09
Legal counsel – BGI Legal Auditor – Ernst & Young Georgia LLC Base currency – Georgian Lari (GEL) Management fee – 1.5% of NAV, plus a performance fee calculated as 15% of annual share price appreciation over the hurdle rate, payable annually in arrears Hurdle rate – Equal to Bank of Georgia’s one-year GEL term deposit, set annually (14% in 2009)
Income Statement (Amounts In GEL ‘000's)
Operating revenue Investment income Other non-operating revenue less exp. Total revenue Impairment of property, plant and equip. Salaries and other benefits General and administrative expenses Depreciation and amortisation charges Finance cost Total expenses Profit/(loss) before income tax Income tax (expense)/benefit Profit/(loss) for the period
Q1 2009 Q1 2008 (Unaudited) (Unaudited)
1,334 386 1,720 (149) (340) (6) (172) (666) 1,054 1,054 342 342
Change, Y-O-Y
n/a 290% n/a 403%
News
In January 2009 CEI set up a special purpose vehicle (SPV) Mtkvari HPP and allocated a capital equivalent of US$ 15 mln as equity of the SPV. The decision was made in order to separate expenses incurred for the construction of Mtkvari HPP from other operations of the company. In January, after a competitive bidding process the Company hired Ankara based ENCON Environmental Consultancy Co. to implement an Environmental Impact Assessment (EIA) of Mtkvari HPP. The EIA is required by the law of Georgia to receive the permission for the construction of HPP, as well as by, IFIs before approving the loan. After the competitive bidding process, the company has hired Tbilisi based GeoEngineering Ltd for the implementation of geological research works on the construction and water catchment areas of Mtkvari HPP. The ongoing research (drilling, testing, etc.) has already demonstrated that the ground structure and content meet the initial expectations of the project. The final geological report is planned to be issued by the end of May.
n/a (33) 346% (161) 112% (0) 113,774% n/a (194) 243% 148 (29) 119 613% n/a 784%
Balance Sheet (GEL) (Amounts In GEL ‘000's)
Property, plant and equipment Intangible assets Total non-current assets Trade and other receivables Short-term investments Cash and cash equivalents Total current assts Total assets Share capital Share premium Treasury shares Other reserve Retained earnings/(accum. deficit)
31-Mar-09 31-Dec-08Change, % (Unaudited) (Unaudited) Y-O-Y
12,265 2 12,267 16,070 2,149 26,705 44,924 57,191 12,500 43,981 (6,462) (660) 7,586 56,945 16 16 230 230 246 57,191 8,120 2 8,122 22,611 2,725 51,597 76,933 85,055 12,500 43,969 (6,465) 397 6,532 56,933 16 16 153 1,559 26,395 28,106 28,122 85,055 51% -3% 51% -29% -21% -48% -42% -33% 0% 0% 0% n/a 16% 0% 0% 0% 51% n/a n/a -99% -99% -33%
In the final capital structure of Mtkvari HPP up to 50% of the project will
most likely be levered with the debt provided by IFIs at below the market rate
Ownership Structure
Others 26.7% Kairos Fund Ltd 32.9%
Total equity Deferred income tax liability Total non-current liabilities
Sakaropel (East Capital) 5% Consibilink Ltd (East Capital) 6.6%
Trade and other payables Current income tax liability Borrowings Total current liabilities
BNY (Nominees Limited) 12.4%
Kairos Eurasian Fund 16.4%
Total Liabilities Total equity and liability
JSC Caucasus Energy & Infrastructure (CEI): 44 Al. Kazbegi Ave., Tbilisi, 0177, Georgia; Tel: (995 32) 393 256; E-mail: cei@cei.ge