OPG Power Ventures plc Trading Update (8438Y)
February 28 2013 - 2:01AM
UK Regulatory
TIDMOPG
RNS Number : 8438Y
OPG Power Ventures plc
28 February 2013
28 February 2013
OPG Power Ventures plc
("OPG" or the "Company")
Trading update
Operating assets performing ahead of expectations and Chennai
III on track for Q2 2013
OPG Power, the developer and operator of power stations in
India, presents the following trading update for the three months
ended 31 December 2012.
Operations summary - quarter ended
Plant Generation Ave tariff realisation Plant Load Factor(%)
(Mn Units) (Rs/kWh) based on name-plate
capacity
-------- ------------------------------- ------------------------------- -------------------------------
31/12/12 30/09/12 31/12/11 31/12/12 30/09/12 31/12/11 31/12/12 30/09/12 31/12/11
-------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
77MW C
I 155 171 158 5.55 5.69 5.09 91 100 93
-------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
77MW C
II 146 n/a n/a 5.51 n/a n/a 96 n/a n/a
-------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
77 MW Chennai I performing strongly
The Company's 77 MW Chennai I plant achieved an average Plant
Load Factor (PLF)of 91% during the three months ended 31 December
2012.This was in line with expectations and, with load factors in
January 2013 being marginally higher than name-plate capacity, we
continue to remain confident of this unit achieving a PLF of 90%
for FY2013 as a whole.
77 MW Chennai II - stronger than expected ramp up to date
In addition 77 MW Chennai II achieved a PLF of 96% during the
three months ended 31 December 2012, its commercial operations
having commenced in early October. The ramp up of this unit since
its commissioning has been stronger than we had anticipated, with
load factors in January 2013 being slightly higher than name-plate
capacity. Accordingly, we have updated our expectation from this
unit to a PLF of just over 90% for FY2013, up from our previous
expectation of 85%.
Along with the gas and waste heat plants from which the
financial contribution remains negligible, the Group's commercial
operating capacity remains at 190 MW.
Average tariff
In line with our flexible revenue model, our present strategy is
to sell most of our power from Chennai I and II to TANGEDCO (Tamil
Nadu state utility) at Rs5.50/kWh on a term contract ending May
2013 and accordingly we expect the average tariff for FY2013 to be
in the range Rs5.50-5.55/kWh, compared with Rs4.93/kWh actually
achieved in the prior year. Transmission charges are not payable on
power sold to TANGEDCO.
Costs
Landed cost of imported coal declined by approximately 3%
compared with the immediately preceding quarter principally on
account of the prevailing term contract with our Indonesian coal
supplier.
80 MW Chennai III - on track to commission in Q2 2013
The Company's 80 MW Chennai III for which equity finance was
derived from internal cash flows is approaching completion. Hydro
testing has been completed successfully as has boxing up of the
turbine. Photographs of the nearly completed unit and the
associated coal handling facilities have been uploaded to the
Company's website. The unit is expected to enter our rigorous test
phase before the end of May beyond which commissioning trials would
commence. The plant is on track to commission in the next
quarter.
160 MW Chennai IV
The 160 MW Chennai IV is in the advanced civil works phase of
construction. As the floor plate of the plant is adjoined to the
existing plant, infrastructure such as roads and access ways are
shared with Chennai I,II and III and are thus already in place. The
next key step is for major equipment deliveries to commence. The
plant remains on track for commissioning in 2014.
2x150 MW Gujarat
The 2x150 MW Gujarat project is progressing well with boiler and
chimney foundations complete and boiler erection, and electrical
works commenced. One of the boiler drums is expected to be lifted
and installed in the next few weeks, a significant milestone for
the project as it facilitates the construction of the balance of
the plant to commence. Chimney construction has already commenced.
The project remains on track for commissioning in the second half
of calendar year 2014.
Supply and demand fundamentals continue to be supportive
With the financial restructuring of many state utility companies
bank lending to the Indian electricity sector is resuming
gradually. Although official statistics indicate the pace of
national GDP growth has slowed to over 5%, this is considerably in
excess of most of the developed world and per capita electricity
consumption in India remains comparatively low. In addition,
economic reforms continue as part of government policy.
Accordingly, we continue to believe that even with a weak rupee and
high interest rates, strong supply/demand fundamentals remain in
place.
About OPG
OPG is operating and developing power projects in India under
the group captive model with 190 MW in operations and a further 552
MW under development. In the six months ended 30 September 2012,
the Group's revenues were GBP17.8m and profit before tax was
GBP2.5m.
For further information, please visit www.opgpower.com or
contact:
+91 (0) 44 429 11
OPG Power Ventures PLC 211
Arvind Gupta
V Narayan Swami +44 (0) 7760 178
Ajay Paliwal 530
Cenkos Securities (Nominated Adviser
& Broker)
Stephen Keys / Camilla Hume +44 (0) 20 7397 8900
Tavistock Communications
Simon Hudson/Kelsey Traynor +44 (0) 20 7920 3150
-ends-
This information is provided by RNS
The company news service from the London Stock Exchange
END
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