Chennai weather update

RNS Number : 9073J

OPG Power Ventures plc

22 December 2015

 

22 December 2015

OPG Power Ventures plc

("OPG", the "Group" or the "Company")

414 MW Chennai plant

Weather Update - OPG Team accounted for - Plant available throughout and not damaged

New short term contract with TANGEDCO for 77MW

As has been reported, areas around Chennai in Tamil Nadu have experienced high levels of rainfall recently.  Despite a lack of continuous power and water for many residents, we are able to report that the well-being of all of our management, staff and contractors has been established and the affected areas of the city are also now returning to normal.

Our 414MW plant did not suffer any damage and remained available for production throughout the rains.  This was as a direct consequence of (a) coal stocks being available in our on-site sheds and (b) drainage of excess water from the plant site operating in accordance with our design.  The design incorporated tolerances for significant single rainfall events.  Drainage was in fact effective to the point that we were able to assist local communities by making available our drainage systems and expertise for the considerable relief efforts that were required nearby.

At the time of the heaviest rain fall there was lower electricity demand and grid availability. The Board believes that, whilst there is an expectation of a slight reduction in revenues, the Group continues to trade in line with market expectations.

Separately, but indicative of demand being restored post the rains, the Company has entered into a contract with TANGEDCO to supply to them all of the output from one of our 77MW units at a net tariff of INR 5.05 per KwH until the end of May 2016.  All of the output of the 414MW Chennai plant is   currently contracted.

The commissioning timetable of the Gujarat plant, referred to most recently in our half year results, remains unchanged.

Arvind Gupta, CEO, commented: "The people of Chennai bore the brunt of recent weather events and I'm humbled by their resilience.  Our Board would like to recognise our team for making sure that we were able to provide active support to our neighbours at a time of great need.  Our business has also demonstrated its resilience in limiting any impact from recent events and activity is now returning to normal."

For further information, please visit www.opgpower.com or contact:

OPG Power Ventures PLC	[phone]
Arvind Gupta/V Narayan Swami/Ajay Paliwal
Cenkos Securities
Stephen Keys / Mark Connelly / Callum Davidson	[phone]
Tavistock
Simon Hudson / James Collins	[phone]

About OPG

OPG operates and develops power generation related assets in India, principally under the group captive model, and currently has 600 MW of assets in operation.  In the six months ended 30^th September 2015, according to its unaudited results for the period, the Company generated revenues of approximately £56 million, EBITDA of £23.25 million and earnings per share of 3.41 pence.  OPG expects to commission an additional 150 MW of capacity shortly and is in the process of evaluating projects within a potential pipeline of 4,200 MW.

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