Senoko Energy in Trouble?

[Carbon82]

Senoko Energy seeking govt aid amid power supply glut: Report

SINGAPORE - Local utility company Senoko Energy is reported to have requested aid from the Government as it rides out a supply glut expected to continue for a few more years.

Nikkei Asian Review reported that it has asked to borrow between $100 million and $200 million from the Government.

It is also lobbying for the Government to create a system that guarantees a revenue stream under long-term contracts, regardless of power plant utilisation.

"With the severe business outlook for the next year or two creating the risk of a shortage of operating capital, the utility is battening down the hatches," an official at Japanese trading house Marubeni reportedly said.

Senoko, which has been operating since 1977, has three subsidiaries - Senoko Energy Supply, Senoko Services and Senoko Gas Supply.

The company was bought in 2008 by Marubeni, Kansai Electric Power, Kyushu Electric Power, Japan Bank for International Cooperation and French company GDF Suez, now Engie.

The report said it slipped into the red in 2016, and its net loss widened to about $400 million in 2018.

Singapore is facing overcapacity in its power generation market, as the peak supply capacity is now believed to be double its peak demand. Proceeds from electricity sales are not enough to cover costs of fuel, maintenance and financing.

Asked about the current supply glut, a spokesman with the Energy Market Authority told Nikkei Asian Review that power companies made their investment decisions based on bullish projections for electricity demand growth that did not materialise.

"Flexibility was provided for power generation companies to retire their steam plants," the official added.

"While the power generation market is currently experiencing a situation of having more supply than demand, this looks to be changing as electricity demand is increasing with more data centres coming onstream, as well as older and inefficient generating units being decommissioned."

 

And is that the reason why the government is finally opening it doors to EVs?

[Jamesc]

This all MCF's fault.

Teach people how to reduce their electricity bill lah.

And then this happens.

 

[Jamesc]

Faster sign up with them and get all the cash rebates.

If kenna bank club then can sign a new plan someone else and get more cash rebates again.

I love capitalism, sometimes people make money sometimes they lose money.

Edited November 16, 2019 by Jamesc

[ER-3682]

I think will be the next Hyflux...does Senoko Energy sells Shares or Bonds.?Good Luck to the Holders.

[Jamesc]

Hope that sucker maker comes back and makes him car here now.

[Jamesc]

Glut means prices coming down or not?

Supply and demand determines the price right?

I love capitalism. I hate communism.

Communism is evil.

Edited November 16, 2019 by Jamesc

[Beregond]

na bei, i just transfer to senoko power last week.

they better dun chut stun.

heng haven transfer my workplace de..😐

[Jamesc]

No need to pump in tax payers money.

I can save Sinalco.

They have tooooo much electricity they should just sell it lah.

Make batteries and export it.

We don't even have to make the batteries just buy the empty batteries and we charge them and sell for a much higher price.

Empty batteries not worth much fully charged batteries people pay a lot for.

Sell the batteries to Apple and Tesla.

Or we can use the excess electricity to turn water into oxygen and hydrogen and sell the oxygen and hydrogen.

Oxygen and hydrogen is worth a lot of money.

Hospitals buy oxygen and hydrogen makes electricity.

In a power hungry world we have too much power is a very good thing.

How to lose money when we have the most valuable thing in the world.

Which country don't want power?

 

[Jamesc]

4 minutes ago, Beregond said:

na bei, i just transfer to senoko power last week.

they better dun chut stun.

heng haven transfer my workplace de..😐

No lah now is the best time to sign with them.

If I not locked in for 2 years I also will sign with them.

Get all the cash rebates and if they bank club just sign with another provider lah.

No such thing as you switch and no power lah.

Will never happen. Its guaranteed you will have power even if they close shop.

 

[No_worries]

My humble hdb flat power supply is currently by senoko power, contract left 1.5 years more. Hopefully no stunt such as price increase etc😁.

[Mustank]

28 minutes ago, No_worries said:

My humble hdb flat power supply is currently by senoko power, contract left 1.5 years more. Hopefully no stunt such as price increase etc😁.

You should pray they toh

then you can sign with another guy and get rebates again 

[Carbon82]

Actually all the electricity supply in Singapore are managed by EMA (Energy Market Authority). And in the worst case scenario that any of the generator folded, EMA will ensure that other generator make up the difference. 

[Theoldjaffa]

Wah, simi sai logic is that. 

they want gahmen to GUARANTEE them revenue stream under long-term contracts, regardless of power plant utilisation.

Business so easy to do one ah?

Run into issues liao then go to gahmen cry father cry mother and want to be bailed out using taxpayer money.

SMRT like this, Senoko like this. Who’s next?

[Ash2017]

1 hour ago, Theoldjaffa said:

Wah, simi sai logic is that. 

they want gahmen to GUARANTEE them revenue stream under long-term contracts, regardless of power plant utilisation.

Business so easy to do one ah?

Run into issues liao then go to gahmen cry father cry mother and want to be bailed out using taxpayer money.

SMRT like this, Senoko like this. Who’s next?

for them to ask

it must had been an option our gov gave to them when they inked the contract

 

no jap firm is so thick skin

[Tanhangkiang]

5 hours ago, Carbon82 said:

Senoko Energy seeking govt aid amid power supply glut: Report

SINGAPORE - Local utility company Senoko Energy is reported to have requested aid from the Government as it rides out a supply glut expected to continue for a few more years.

Nikkei Asian Review reported that it has asked to borrow between $100 million and $200 million from the Government.

It is also lobbying for the Government to create a system that guarantees a revenue stream under long-term contracts, regardless of power plant utilisation.

"With the severe business outlook for the next year or two creating the risk of a shortage of operating capital, the utility is battening down the hatches," an official at Japanese trading house Marubeni reportedly said.

Senoko, which has been operating since 1977, has three subsidiaries - Senoko Energy Supply, Senoko Services and Senoko Gas Supply.

The company was bought in 2008 by Marubeni, Kansai Electric Power, Kyushu Electric Power, Japan Bank for International Cooperation and French company GDF Suez, now Engie.

The report said it slipped into the red in 2016, and its net loss widened to about $400 million in 2018.

Singapore is facing overcapacity in its power generation market, as the peak supply capacity is now believed to be double its peak demand. Proceeds from electricity sales are not enough to cover costs of fuel, maintenance and financing.

Asked about the current supply glut, a spokesman with the Energy Market Authority told Nikkei Asian Review that power companies made their investment decisions based on bullish projections for electricity demand growth that did not materialise.

"Flexibility was provided for power generation companies to retire their steam plants," the official added.

"While the power generation market is currently experiencing a situation of having more supply than demand, this looks to be changing as electricity demand is increasing with more data centres coming onstream, as well as older and inefficient generating units being decommissioned."

 

And is that the reason why the government is finally opening it doors to EVs?

On 5 September 2008, Temasek Holdings sold Senoko Energy Pte Ltd to Lion Power Holdings for S$3.65 billion. Lion Power is owned by a consortium led by Japan's Marubeni Corporation . Other members of the consortium are GDF Suez of France, The Kansai Electric Power Company , Kyūshū Electric Power Company and Japan Bank

[Voodooman]

4 hours ago, Mustank said:

You should pray they toh

then you can sign with another guy and get rebates again 

If Senoko toh, the current oversupply may become undersupply and you better pray you can still get the current tariff you have locked in to, you still want rebates?  😅😂🤣

Edited November 16, 2019 by Voodooman

[Voodooman]

1 hour ago, Tanhangkiang said:

On 5 September 2008, Temasek Holdings sold Senoko Energy Pte Ltd to Lion Power Holdings for S$3.65 billion. Lion Power is owned by a consortium led by Japan's Marubeni Corporation . Other members of the consortium are GDF Suez of France, The Kansai Electric Power Company , Kyūshū Electric Power Company and Japan Bank

Imagine you pay $3-4 billion for what appears to be a regulated business and then the rule changes suddenly and you lost all $3-4 billion.  But that is business risk lah, just suck it up, noone is to be blamed.

Temasek must be laughing all the way to the bank and the investors look very stupid. 😂

Remind me of a Superman Lee company I bought into many years ago which the old man was divesting, still nursing heavy losses until today.  😢

What is the lesson to be learnt? 

[Tanhangkiang]

6 minutes ago, Voodooman said:

Imagine you pay $3-4 billion for what appears to be a regulated business and then the rule changes suddenly and you lost all $3-4 billion.  But that is business risk lah, just suck it up, noone is to be blamed.

Temasek must be laughing all the way to the bank and the investors look very stupid. 😂

Remind me of a Superman Lee company I bought into many years ago which the old man was divesting, still nursing heavy losses until today.  😢

What is the lesson to be learnt? 

Need to evaluate business with consideration of changing context and environment.