29th Apr 2019 15:02
LONDON (Alliance News) - OPG Power Ventures PLC on Monday said it expects a performance in line with expectations for recently-ended financial year.
The power generation plants developer said generation, excluding deemed generation, in the year to the end of March was 2.47 billion units, 1% lower than 2.49 billion units a year earlier.
This slight decrease in generation was primarily due to Unit IV in India being shut down from early December 2018 to early March 2019 whilst turbine repairs were undertaken.
The average tariff realised during the year was 10% higher as a result of tariff increases for captive customers. The average landed coal price was GBP49.3 per tonne in the year, broadly flat compared to GBP49.4 per tonne in 2018.
"We are cautiously optimistic that the lower coal prices will provide some additional benefits for the group in financial 2020," the company said in the statement Monday.
Looking forward, OPG Power said the Indian economy is expected to be the fastest growing major economy, resulting in high GDP growth and higher demand for electricity. Therefore, the company expects to benefit from robust tariffs and a projected lower coal price level.
"We are pleased to report continued strong operational performance in financial 2019 and expect to report profit for our financial 2019 in line with expectations," said Executive Chair Arvind Gupta.
Shares in OPG Power were down 5.4% at 19.165 pence on Monday.
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