OPG Power Ventures plc – Trading Update

OPG Power Ventures plc – Trading Update

OPG (AIM: OPG), the developer and operator of power generation plants in India, announces a trading update in respect of the full year ended 31 March 2020 (“FY20”).

Summary

For the year ended 31 March 2020:

·   Total generation (including deemed) of 2.72 billion units (FY19: 2.71 billion units)

·   Plant Load Factor (“PLF”) was 75 per cent, consistent with FY19 PLF at 75 per cent

·   Average tariff was Rs5.67, up 4.8 per cent (FY19: Rs5.41) following full year impact of tariff increases in October 2018 for captive users

·   £18.0 million (Rs1.68 billion) (4.5p per share) of term loan principal repayments made during FY20, reducing the term loans balance to £49.8 million (Rs4.63 billion) at 31 March 2020

Operations during COVID-19 lockdown:

·   Unit 3 (80 MW) continued operations during the lockdown with limited PLF, although this has substantially increased during May 2020 and PLF is expected to be in 75-80 per cent range this month

·   Two (77MW each) out of three other units resumed operations from the beginning and middle of May 2020 respectively

·   Various cost reduction, efficiency improvement and liquidity improvement measures have been implemented to ensure sustainable operations

COVID-19:

·   Nationwide lockdown in India extended to 31 May 2020; restrictions are being relaxed in less affected areas enabling economic activity to restart

·   The imposition of lockdown to control the COVID-19 outbreak has had an adverse impact on overall electricity demand in India in FY21

There will be a virtual presentation at InvestorMeetCompany platform for investors and analysts at 11 am on 27 May 2020.  To register for the presentation, please contact opg@tavistock.co.uk or register at https://www.investormeetcompany.com/opg-power-ventures-plc/register-investor?arc=ffac219d-20c0-4ed5-b428-5b17ea09ef0d

Arvind Gupta, Executive Chairman of OPG, commented:

“We have been working tirelessly to implement plans to limit the human, financial and commercial consequences of COVID-19. We have initiated significant cash conservation initiatives across the Group, whilst ensuring the health and safety of all our employees to secure our long term sustainability. These initiatives have improved the liquidity position of the Company which together with support from our lending banks put the Group in a stronger position to manage the difficult market conditions. I would like to thank, all of our employees, vendors, banks and all stakeholders for the incredible support we have received during these unprecedented and extraordinary times.”

No Comments

Post a Comment