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OPG Power Ventures pleased with full-year operational performance
India-focussed power generation plants developer OPG Power Ventures updated the market on its trading for the full-year ended 31 March on Tuesday, reporting a total of 1.1 billion units in its fourth quarter, an improvement of 15% year-on-year.
The AIM-traded firm said total generation in the 2018 financial year was 4.8 billion units, up 10%, with Chennai plant load factor standing at 77% for the year, and 78% at Gujarat.
Sales tariffs increased by 4% at the Chennai plant for the 2019 financial year.
A total of 62 MW Karnataka solar projects was commissioned, and it was expected to contribute to group earnings in 2019.
Gujarat Distribution Companies of the State Electricity Utility (DISCOMs) were no longer levying cross-subsidies to OPG's customers, the board reported, with £7m of dues already recovered by the group.
A strategic review of the Gujarat plant was underway, following the successful resolution of group captive status with DISCOMs, and a 5% equity interest in OPGS Gujarat had been sold.
"This has been a record year of production for OPG, in which we have operated both our plants in line with our full year guidance," said executive chairman Arvind Gupta.
"Improvements in the tariffs at Chennai for FY19 have provided us with some additional headroom for next year versus the prevailing coal price which, albeit is still high, is lower than recently."
Gupta said that, with the commissioning of 62 MW solar projects in Karnataka, the company now had a diversified portfolio of thermal and renewable assets which was said to be "strategically important" in the modern environment, and a key milestone for OPG.
"Following the resolution of the significant issues to do with recovering historic cross subsidy deductions made by Gujarat DISCOMs, the board has decided to review its strategic options for the Gujarat plant and remains focused on the group delivering strong operational and financial performance, to allow the group to deliver true value to stakeholders."