I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Wednesday, 3 April 2019

Hyflux's problems due to its own commercial decisions: EMA

THE Energy Market Authority (EMA) of Singapore said on Tuesday that Hyflux's present financial situation was the "result of its own commercial decisions".

 The gas industry regulator was responding to a reader's letter "Time for a close look into why Hyflux tanked. This was no typical business failure", published in The Business Times on March 26.
Hmm ... like that then ..

 Retail investors's present financial situation was the "result of their own investing (or lending) decisions.

 Well! Every thing is covered!


Posted by Createwealth8888 at 08:00
Labels:

3 comments:

  1. CreateWealth88883 April 2019 at 13:06:00 GMT+8

    Suppose to leverage higher margin electricity to subsidize loss making water to win the water plant.

    Leverage is a double edged sword. Die liao

    ReplyDelete
  2. CreateWealth88883 April 2019 at 13:25:00 GMT+8

    Bid at sucide water rate to win tender. Blame CEO?

    ReplyDelete
  3. Spur3 April 2019 at 13:34:00 GMT+8

    1. Desalination is very electricity intensive -- for high electricity countries like SG & Oz, the water produced will be quite expensive unless you can innovate & streamline the desalination process.

    2. Hyflux quoted a very low bid to win the 2011 PUB tender. 33% cheaper than the 2nd lowest bid from Keppel. Even with this low bid, the desalinated water is still many times more expensive than JB water.

    3. In order to balance the very low water price bid, Hyflux planned to build electricity plant together with desalination plant. Using own electricity will be slightly cheaper, and can sell excess electricity for high prices to cover the low water pricing. At that time oil had recovered to US$100 & electricity consumers were sweating.

    4. But the high oil & electricity prices in 2011 so soon after the GFC likely alarmed both industry & govt. Govt subsequently opened up wholesale electricity market for more competitive pricing & also help industries. EMA started to award genco licences. We retails are now benefiting from this govt action. :)

    5. The large supply of gencos & electricity, as well as collapse of oil prices from 2012-2015 ... cratered the electricity market. Hyflux no longer can sell high margin electricity to cover the low water pricing. In fact cannot even cover its own electricity plant operating costs. So now LL ... forced to sell water at below cost, and electricity at low pricing too.

    6. Did people at PUB realised that Hyflux was quoting below cost desalination water pricing back in 2011?? Probably. But then S'pore operates on willing buyer & willing seller, legal contracts, caveat emptor basis. Hyflux at that time kept on boasting that it had developed new cost effective desalination techniques, and world's first in combined concurrent water processing cum electricity generating plant. The figures & projected profits all seemed workable. Banks & auditors double confirmed. Analysts triple confirmed.

    7. At the end of the day, those investors who forgot about diversification & position sizing kena terok. Similar to 2007/2008 minibonds ... retirees or near-retirees think of 1-shot-1-kill method to secure long-term income stream. Best also as principal not touched.

    8. Minister: "The Government cannot use taxpayers’ money to help investors recoup their investment losses. Investors in search of returns must understand that returns come with some risk." At least this time around nobody saying "eyes open big big" and "see monthly CPF so happy". LOL

    ReplyDelete

Subscribe to: Post Comments (Atom)
Related Posts with Thumbnails