Second Quarter Trading Update

RNS Number : 5105X

OPG Power Ventures plc

20 November 2014

 



20 November 2014

OPG Power Ventures plc

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

Trading update for the three months ended 30 September 2014

OPG Power Ventures plc, the developer and operator of group captive power generation plants, announces the following trading update for the three months ended 30 September 2014 ("Q2 FY15").

Highlights

·   Plant Load Factor (PLF) of 82% in Q2 FY15 and 88% in H1 FY15 following planned shutdowns at Chennai I and Chennai II of 27 days and 7 days respectively

·   Average tariff of Rs5.58 realised per kWh

·   New agreement for sale of 255 MW to TANGEDCO from Chennai at Rs5.50 per kWh until Sep 2015

·   480 MW Projects - construction activities being completed, equipment tests ongoing ahead of commissioning expected to start in December 2014

·   Gujarat transmission lines - construction continues

·   Imported coal booked for Chennai until March 2015 and first deliveries received for Gujarat

Operations Summary

Parameter	Quarter ended 30 Sep 14	Quarter ended 30 Jun 14	Quarter ended 30 Sep 13	Half year ended 30 Sep 14	Half year ended 30 Sep 13	Year ended     31 Mar 14
Generation (million units)
Chennai I	115	148	164	263	332	646
Chennai II	158	169	172	327	334	668
Chennai III	152	160	143	312	177	527
Total (million units)	425	477	479	902	843	1,841
PLF (%)
Chennai I	67	88	97	78	98	96
Chennai II	93	100	101	97	99	99
Chennai III	86	92	81	89	78	92
Average (%)	82	93	93	88	93	96
Tariff (Rs/kWh)	5.58	5.56	5.52	5.57	5.56	5.55

Power generation in Q2 FY15 was 9% lower than the immediately preceding quarter at 425 million units (Q2 FY14: 477 million units) on account of planned shutdowns taken during the period.   Energy generation during the first half as a whole was nevertheless 7% higher than in the comparable period in the prior year at 902 million units (H1 FY14: 843 million units).  Following its first major planned shutdown in 42 months, Chennai I resumed service at a PLF of over 92% and 95% in August and September respectively.

480 MW new capacity - construction being completed and final pre-commissioning trials underway

Construction at both 300 MW Gujarat and 180 MW Chennai IV project sites is being completed now and pre-commissioning equipment trials are underway.  This should pave the way for commissioning trials to start in December which in turn should allow the Company to be ready to commence commercial operations in the following quarter once transmission lines are made available as planned in Gujarat and utilising existing transmission lines in Chennai.

Gujarat Energy Transmission Company Limited ("GETCO") continues with the construction of the new multi circuit transmission line for large scale evacuation of power from our plant as well as constructing a lower capacity double circuit transmission line.  We anticipate transmission lines in Gujarat to be ready for us to dispatch power in the next quarter.

The Gujarat plant is expected to use a blend of domestic and imported coal. Until domestic linkage coal is made available, we are procuring coal under short term agreements with the Group's existing suppliers of imported coal.  Our first such shipment recently arrived at the Gujarat site.

Outlook

Our projects are on track to commission shortly and overall trading in the current year remains in line with expectations.

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

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

About OPG

OPG is operating and developing power plants in India under the group captive model with 270 MW in operation and a further 480 MW under development.  In the year ended 31 March 2014, the Company generated revenues of £99 million, EBITDA of £31 million and earnings per share of 4.1 pence.

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