21st May 2014 11:52
LONDON (Alliance News) - OPG Power Ventures PLC said Wednesday that it delivered a higher pretax profit in its recent financial year, boosted by a strong revenue growth and full-year contributions from several plants in India.
The power generation plant operator gave a positive outlook for the business going forward, and said it expects to declare a maiden dividend, given the progress the company has made, following the successful and sustainable profitable operation of the new 480 megawatts of capacity.
The group reported a pretax profit of GBP18.0 million for the year ended March 31, up from a GBP10.5 million profit the prior year, driven by a strong increase in revenues to GBP98.8 million, up 76% on the prior year's GBP56.2 million, which was boosted by a full-year contribution from the 77 megawatt Chennai I & Chennai II plants, and nearly 10 months contribution from the 80 megawatt Chennai III plant, all in India.
"This year has witnessed another step change in scale and profitability for the group with a solid performance delivered by all operating units. Notwithstanding somewhat slower headline economic growth in India last year, we expect trading conditions in the electricity sector to continue to gradually improve.
During the year, the group said it spent GBP128 million on advancing its capital projects, more than any previous period, and said it has around GBP51 million earmarked to complete the projects, with remaining milestones including the hydraulic testing of Chennai IV, the completion of transmission lines external to the Gujarat plant and the assembly of the turbine generator at both projects.
It said that once completed, those developments will yield a portfolio comprising several operating units across two key strategic locations - 450 megawatts in the south and 300 megawatts in the west.
OPG Power Ventures shares were trading 1.8% higher Wednesday early afternoon, at 94.97 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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