Page 13 - AfrElec Week 21

AfrElec
NEWS IN BRIEF
AfrElec
Tanzanian Petroleum Development Corp. (TPDC) through the National Natural Gas Infrastructure (NNGI).
Net income attributable to shareholders increased 356% to $12.6mn for Q1-2020 over the comparable prior year period. The increase is primarily due to the increase in finance income related to the collection of $10.1mn of TANESCO’s long-term arrears.
Net cash flows from operating activities for Q1-2020 decreased by 94% to $0.8mn from $13.2mn in Q1-2019. The decrease
is primarily a result of the payment of the current portion of the additional profits tax liability of $11.9mn to the Government of Tanzania.
Adjusted funds flow from operations
for Q1-2020 decreased by 16% to $7.6mn compared to the same prior year period.
The decrease was primarily related to a large receivable from TPDC as at March 31, 2020, a majority of which was settled subsequent to the end of Q1-2020.
Capital expenditures decreased by 55% to $0.5mn for Q1-2020 compared to $1.1mn for Q1-2019. The capital expenditures in Q1-2020 primarily relate to the flowline decoupling construction.
The capital expenditures in Q1-2019 primarily relate to the refrigeration project for the Songas Infrastructure.
As at March 31, 2020, the Company is
in a stable financial position with $82.9mn in working capital (December 31, 2019: $107.0mn), cash and short-term investments of $98.1mn (December 31, 2019: $138.7mn) and long-term debt of $54.1mn (December 31, 2019: $54.1mn).
The decrease in working capital and cash and short-term investments was primarily related to the substantial issuer bid (SIB) completed in March 2020.
ORCA EXPLORATION GROUP
Axxela launches successful issue of Series 1 Bonds
Axxela, a portfolio company with a vision of becoming the preferred and fastest-growing gas and power firm in sub-Saharan Africa, has concluded the Axxela Funding 1 PLC Series
1 NGN10bn seven-year fixed rate senior secured bond issue(under the NGN50bn bond issuance programme).
The Series 1 Bonds were issued by Axxela Funding 1 PLC, a special-purpose funding vehicle and wholly-owned subsidiary of Axxela.
At the conclusion of the book build, the NGN10bn issuance was 24% subscribed, and this oversubscription presented the Company with the mandate to accept an additional 15%
of the proposed issuance size. This brings the Series 1 total proceeds to NGN11.5bn. Speaking on the inaugural issuance, Axxela’s Chief Executive Officer Bolaji
Osunsanya remarked: “Our milestone debut market entry underpins the necessary symbiosis between private entities and debt capital markets. We appreciate the support of all corporates, professional parties, and investors involved in the ratification and issuance process. The favorable response indicates the level of investor confidence
in our Company’s reputation, brand, and performance.
This funding will support our multi- pronged growth strategy of optimising
our operations and assets, expanding our footprint, and revolutionising the midstream sector. As a prime portfolio company with demonstrated leadership within the sector, we remain uniquely positioned to satisfy
the growing natural gas and energy demand across the sub-region.” Axxela’s strategic diversification plans include a ramp up of its gas supply and trading activities across West Africa, alongside the build out of key power and virtual pipeline infrastructure.
Axxela’s Chief Financial Officer Tim Ononiwu said: “This is another remarkable feat in our growth story and provides an appropriate financing mix for our enterprise. The oversubscription of our first capital market issuance in such a challenging market is testament to the strengths and prospects
of our company. This success avails us the
liquidity to implement our business plans, while lowering our cost of capital. In addition, we are well positioned to access the market
in the future, giving us the opportunity
to continuously provide real value for our shareholders.”
AXXELA
HYDRO
Ethiopia outlines GERD plans
Ethiopia on May 25 briefed resident ambassadors of European countries and Americas about the Grand Ethiopian Renaissance Dam (GERD) under construction on the Nile River and latest developments in the technical, political and diplomatic developments surrounding the hydro dam.
The briefing was held by Foreign Minister Gedu Andargachew and Gedeon Asfaw, an engineer member of Ethiopia’s negotiating team.
Tensions have escalated between Egypt and Ethiopia after the former complained to the United Nations Security Council on May 1 after Ethiopia announced its plan to begin first-phase filling of its $5billion hydro dam
Week 21 28•May•2020
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