26th Aug 2014 09:54
LONDON (Alliance News) - India-focused power generation plants developer and operator OPG Power Ventures PLC Tuesday said it was trading in line with expectations in the first quarter of its new financial year, with its plant load factor slightly lower but overall generation rising in the period.
The company said its plant load factor was 93% in the three months to June 30, down from the 96% average for its financial year to March 31. OPG said that despite the fall, the overall average was ahead of its expectations and ahead of the nationwide norms in India and that its generation for the period was up 31% against the year before to 477 million units.
Elsewhere in the quarter, the company secured a fixed price contract for imported coal to service all imports at the Chennai 1, 2 and 3 plants until March 2015. OPG said that while the contract will allow it to achieve a lower price to import coal in comparison to recent years, recently introduced levies and increases in transportation costs could offset those savings.
The group also recently signed a joint venture with Noble Chartering, a subsidiary of Noble Group Ltd, to secure attractive long-term rates on international freight. Under that deal, OPG will commit to provide 1.5 million tonnes per year for carriage by the two vessels for a minimum period of ten years at competitive long-term rates.
In a statement, the group said the long-term outlook for the Indian power sector looks strong following the election of a new government in the country and the emphasis it is placing on the power sector.
OPG Power said it is focusing on maximising its existing operations and on delivering its current project portfolio of 480 megawatts in order to nearly treble the size of its operating platform.
Shares in OPG Power Ventures were quoted at 104.00 pence per share Tuesday morning, untraded.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Opg Power