19th Jun 2014 11:15
LONDON (Alliance News) - Greenko Group PLC Thursday reported an increase in profit and revenue for the full year, after it ramped up clean energy generation as it said India transitions to focus on more sustainable methods of producing energy.
The Indian developer, owner and operator of clean energy products posted pretax profit of EUR13.5 million for the year ended March 31, up from EUR8.0 million as year earlier, as revenue rose to EUR53.0 million from EUR38.3 million.
The company attributed its strong performance to 21% increase in generation to 1,072 gigawatt hour from 886 gigawatt hour a year earlier.
Greenko said clean energy is becoming an increasingly important part of the Indian energy market and will provide a significant portion of the Indian government's 12th Plan target for new capacity.
"The Indian energy market is witnessing a paradigm shift, with the emphasis changing to price discovery using reliable supply contracts, instead of unsustainable subsidised power," the company said.
Greenko said given the major shortages in domestic coal and gas supplies, the market now reflects global commodity pricing in its long-term base-load supply and financial return expectations. The group said this effect is visible in the bidding process across multiple states with tariffs well above 80 megawatt hour.
During the year Greenko said it invested over EUR208.9 million in power assets, primarily due to a significant increase in construction activity.
At an operating level, the company said it currently has 235.25 megawatts of operational hydro. There are a further 187.6 megawatts under construction, and the company is continuing to assess selective acquisition opportunities of projects at a late stage of development, or which have recently been commissioned.
Greenko said its wind business also made progress, as it added 348.0 megawatts of new capacity, across three sites. A further 30.0 megawatts is expected to be completed ready for the 2014 monsoon generating period.
However, the thermal arm experienced a mixed year. Although Greenko said its 36.8 megawatts liquid-fuel plants continue to generate operating profit in line with expectations, using existing quasi-tolling structure, it decided to exit two of its biomass plants of 16.0 megawatts located in Chattisgarh, an area and cluster which is no longer of strategic importance to the company.
"The difference of EUR1.1million to book value has been taken as a one-off expense, consequential to this decision to sell these units," Greenko said.
In a separate note Thursday, Greenko said it has begun producing electricity from two wind farms totalling 50 megawatts.
The company said its new wind assets in Ratnagiri and Balavenkatpuram take its total generating portfolio to 661 megawatts.
Commenting on the new additions, Chief Executive Anil Chalamalasetty said: "We are very pleased to have commissioned further wind projects on schedule, and we remain on target to reach roughly 700 megawatts of total operating capacity across our entire portfolio ahead of this year's wind and monsoon season."
Greenko shares were quoted up 0.6% at 162.00 pence Thursday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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