21st May 2019 11:45
LONDON (Alliance News) - OPG Power Ventures PLC said Tuesday it has entered a fixed price coal purchase agreement for 1 million tonnes as a further hedge against coal price volatility.
Shares in OPG were up 3.4% at 19.00 pence in late morning trade.
The 1 million tonnes represent approximately 60% of the Indian power generation plant operator's annual coal requirements. The coal will be delivered under the hedging agreement between June 2019 and March 2020, the end of its financial year.
OPG said the precise terms of its agreement are confidential but added that the fixed price "is in line with management's expectation".
"Whilst other costs, such as freight, remain outside the company's control, with the price of approximately 60% of the company's coal requirement now fixed until March 2020, OPG expects to benefit from the greater visibility that it has on its FY20 financial performance, which remains in line with market forecasts," said OPG.
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