OPG Power Ventures plc Extension of Contract (1452R)
October 23 2013 - 2:00AM
UK Regulatory
TIDMOPG
RNS Number : 1452R
OPG Power Ventures plc
23 October 2013
23 October 2013
OPG Power Ventures plc
("OPG" or the "Company")
Chennai III sales contract extended
Impact of recent Rupee volatility offset by strong operational
performance
OPG Power Ventures plc, the operator and developer of power
plants in India, reports the following developments:
80 MW Chennai III sales contract extended until May 2014
At the time of our update on 29 Jul 2013 we reported that the
Company had entered into a contract to sell power from its newest
plant, 80 MW Chennai III to the Tamil Nadu State Electricity Board
("TANGEDCO") until 30 September 2013. The Company is pleased to
announce that it has agreed to extend that agreement and supply 74
MW from that plant to TANGEDCO at Rs 5.50 per kWh until 31 May
2014.
In aggregate, the Company now supplies 214 MW from its three
operating Chennai plants to TANGEDCO under arrangements continuing
until May 2014. Following delayed payments made during FY 2012,
TANGEDCO is now up to date with its payments to the Company for
electricity.
Impact of Indian Rupee volatility in year to date offset by
strong load factors
The Indian Rupee ("Rupee") has depreciated by approximately 13%
against the USD and 18% against GBP since April 2013 with much of
this volatility having arisen in August 2013 and with some recovery
during the following month.
Whilst this Rupee depreciation has resulted in a higher coal
cost in Rupee terms for the coal imported by the Company (and paid
for in US Dollars), the effect of this has been largely offset by
the strong load factors and a better than expected operating
performance by our three operational units. In addition, over the
last few months the Company had entered into selective hedging
arrangements in relation to short term trade payables to better
manage the impact of currency volatility on coal purchases. The
Board believes that the adverse impact of the Rupee's recent
devaluation upon coal costs has been largely offset.
Furthermore, the Company has no long term borrowings in foreign
currencies and principal capital debt contracts are denominated in
Rupees.
About OPG
OPG is operating and developing power projects in India under
the group captive model with 270 MW in operations and a further 472
MW under development. In the year ended 31(st) March 2013, Group
revenues were GBP56m, EBITDA was GBP17.7m and profit before tax was
GBP10.5m.
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
Cenkos Securities (Nominated Adviser
& Broker)
Stephen Keys / Camilla Hume +44 (0) 20 7397 8900
Tavistock Communications
Simon Hudson +44 (0) 20 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange
END
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