28th Nov 2019 12:30
(Alliance News) - Indian power generation firm OPG Power Ventures PLC proposed an interim dividend Thursday after profit and revenue rose on the year prior after it tightened focus on its profitable assets.
Shares in OPG were 14% higher at 17.95 pence in London on Thursday.
For the six months ended September, pretax profit widened 28% to GBP9.7 million from GBP7.6 million the year prior. This was after revenue rose 0.6% to GBP78.4 million from GBP77.9 million the year before.
"Two years ago the board adopted a strategy to focus on our profitable, long-life assets in Chennai and to deleverage in order to deliver growth in shareholders' equity by the transfer of value from debtholders to investors," Chair Arvind Gupta said. "This process continued successfully during the first half of this financial year."
OPG proposed a 0.6 pence per share interim dividend. The firm did not pay a dividend the year prior.
"By maintaining our sector leading operational performance, we intend to sustain the rate of term debt repayment with the objective that in 2023 we will be debt free," Gupta added. "As interest costs decline in line with borrowings we will generate increasing levels of free cash flow which, in due course, will increase shareholder value substantially."
By Ahren Lester; [email protected]
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