Trading Update

RNS Number : 1681A

OPG Power Ventures plc

17 February 2014

 



17 February 2014

OPG Power Ventures plc

("OPG" or the "Company")

Trading update for the three months ended 31 December 2013

OPG Power Ventures plc, the developer and operator of power generation plants, presents a trading update for the three months ended 31 December 2013 (Q3 FY14).

Operational Highlights

·   Q3 FY14 generation of 518 million units up 8% on Q2 FY14 (Q3 FY13: 301 million units)

·   Total year-to-date generation up 129% on nine months ended 31 Dec 2012

·   C3 unit fully ramped up; average Plant Load Factor (PLF) achieved across all units of 100% in the quarter (Q2 FY14: 93%)

·   Average year-to-date PLF across all units of 96% up from 90% in nine months ended 31 Dec 2012

·   Q3 FY14 Underlying Rupee Revenue of Rs  2.67 bn compared with Rs 4.82 bn in full year FY13

·   Entered into a 15 year Long Term Variable tariff arrangement with TANGEDCO for C3, providing foreign exchange protection on imported coal

·   Full year results expected to meet market expectations

Project Highlights

·   300 MW Gujarat (2x150 MW units) - within budget and on track for commissioning by Sep 2014

·   160 MW Chennai IV  - within budget and on track for commissioning by Dec 2014

Parameter	Quarter ended 31 Dec 13	Quarter ended 30 Sep 13	Quarter ended 31 Dec 12	Nine Months ended     31 Dec 13	Nine Months ended     31 Dec 12	Full year ended 31 Mar 13
Generation (Mn units)
Chennai I	161	164	155	493	448	617
Chennai II	178	172	146	512	146	315
Chennai III	178	143	-	355	-	-
Total (Mn units)	518	479	301	1360	594	932
PLF (%)
Chennai I	95	97	91	97	88	92
Chennai II	105	101	96	101	96	99
Chennai III	101	81	-	88	-	-
Average (%)	100	93	93	96	90	94
Tariff (Rs/kWh)	5.54	5.52	5.53	5.55	5.52	5.58

Projects

Provided below is a quantified assessment of the progress of the Company's current and most significant projects.  This is based purely on management's experience and not verified by any third party and is presented by reference to each of the key stages in a typical project in development.  It is a management estimate at the date of this statement only and does not purport to quantify the risk of any project not commissioning.

Project stage	Financing	Civil Works and Foundations	Chimney/Boiler related/Rest of plant
Chennai IV	100%	90%	50%
Gujarat	100%	92%	72%

At Chennai IV, almost all civil works and foundations have been completed.  The boiler drum has been erected and installed and the air cooling condensers are in advanced construction.  A team of around 300 are working full time at the site, to be joined by a further 50 when turbine deliveries commence around June 2014.   Balance of plant completion and equipment testing, including hydro tests, should follow in the subsequent quarter.  Chennai IV shares its storage, power evacuation and water treatment facilities with Chennai II and III.  Our leadership team for the delivery of Chennai IV is the same as on the previous three Chennai units and the project continues to be on track for commissioning in the current calendar year. 

Our 300 (2x150) MW Gujarat project also continues to progress well.  The installation and hydro testing of both boilers has been completed successfully.  Turbines of both units are now at site and the turbine of one of the units has been installed. Chimney construction is complete. Construction of the balance of plant is ongoing and should finish in June 2014.  Thereafter, we expect to commence test firing in the subsequent quarter and the project continues to be on track for commissioning around September 2014.

Our website at www.opgpower.com has been updated with recent photographs of all operations and projects.

Outlook

We remain positive as to the Company's prospects as both expansion projects are progressing well and we continue to expect to commission significant additional capacity in 2014.  Due to the strong performance of our operating assets, we remain confident that the results for the current financial year will meet market expectations.       

About OPG

OPG is operating and developing power projects in India under the group captive model with 235 MW in operations and a further 460 MW under development.  In the six months ended 30^th September 2013, Group revenues were £47.7m, EBITDA was £13.7m and profit before tax was £7.6m.

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

OPG Power Ventures PLC	[phone]
Arvind Gupta
V Narayan Swami
Cenkos Securities (Nominated Adviser & Broker)
Stephen Keys / Camilla Hume	[phone]
Tavistock Communications
Simon Hudson/James Collins	[phone]

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