RNS Number : 9197W
OPG Power Ventures plc
06 August 2009
OPG Power Ventures Plc
Trading Statement
OPG Power Ventures plc ("The Group" or "OPG"), the developer and operator of group captive power plants in India, is pleased to announce a trading update
The Group operating performance has benefited both from the revenues generated by the 10 MW plant, commissioned in September 2008, and from the higher unit prices realized on short term sales of power to third parties. Consequently, management are very pleased with the Group's performance during the year.
Trading Outlook
Demand for power in India continues to outstrip supply, thus the need for power plant developers such as OPG continues to intensify. This has resulted in higher than expected prices being achieved for spot power sales. The Group anticipates that trading conditions for power producers will not only continue to remain favourable in the medium term but may improve further as well.
Operating Review
During the period the 19.4MW and 10MW plants operated in line with management's forecasts selling a significant amount of capacity at premium rates on 3-5 month contracts. New longer term 11 month contracts have been negotiated giving the company increased visibility of profits and cash flows.
Plants under Construction
As reported earlier, commissioning trials have commenced at the 77 MW plant under construction near Chennai. Accordingly, this plant is expected to commence commercial operations in the fourth quarter of 2009. Given the present and enduring buoyancy in prices for spot and short term power, it is anticipated that this plant will, from inception, contribute significantly to the Group's revenue streams.
The 2 x 150 MW development in the Kutch region of Gujarat continues to progress satisfactorily with major equipment already on order, experienced contractors and consultants in place and financing arrangements firmed up.
We will be making further announcements in regard to the progress of these developments.
Arvind Gupta, Chief Executive Officer, commented: "We are pleased with the progress in the current year and anticipate the present brisk trading conditions for power producers to continue. We look forward to the commencement of our 77 MW plant and to the significant contribution it will make to the Group's operating profit. The Group focus, as before, will remain the swift implementation of our power station developments as well as fast tracking our pipeline projects to the development stage".
Enquiries:
For further information, please visit www.opgpower.com or contact:
OPG Power Ventures Plc
Arvind Gupta (Managing Director) +44 (0) 7814 830 893
+91 (0) 98400 96299
+91 (0) 44 429 11 222
V. Narayan Swami (Finance Director) +91 (0) 99400 17927
+91 (0) 44 42911214
Martin Gatto (Senior Non Executive +44 (0) 7778 749 223
Director)
Cenkos Securities (Nominated +44 (0) 20 7397 8900
Adviser & Broker)
Stephen Keys/ Camilla Hume
Tavistock Communications +44 (0) 20 7920 3150
Simon Hudson / Nick Peters/ Andrew
Dunn
Note to editors:
OPG Power Ventures Plc is a profitable developer and operator of power plants in India. India's rapid economic growth has been constrained by power shortages and the government has deregulated the industry with a new open market framework allowing developers into the market. The Group Captive Power Producers Scheme, introduced in 2005, allows companies such as OPG to build new power plants to supply electricity directly to groups of customers at mutually agreed prices and the Group has substantial capacity expansion plans.
OPG has two plants, generating 29MW, in profitable operation, a further two under construction and two more in the pipeline for medium term development. Taking advantage of the new regulatory environment, OPG intends to have over 400MW in operation by 2012/13.
This information is provided by RNS
The company news service from the London Stock Exchange
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