OPG Power Ventures PLC on Tuesday said its annual revenue and profit are in line with market expectations, but notes higher coal prices have affected its total generation.
The Isle of Man-based company, which develops and operates power plants in India, said total generation for the year ended March 31 was 1.5 billion units, down 17% from 1.8 billion units the year before. This was attributed to high coal prices, as well as OPG Power’s strategy to focus on profitable operations in order to meet market expectations.
Shares in OPG Power were down 4.9% at 8.80 pence each in London on Tuesday morning.
Meanwhile, plant load factor for 2023 fell to 42% from 52% a year prior. PLF for April was 75% compared to 71% in March.
OPG Power added that its average tariff in 2023 was ₹8.71, or 0.1 pence, per kilowatt hour, up 50% from ₹5.82 per kwh in financial 2022.
The company also repaid ₹1.72 billion in debt during 2023, while non-convertible debentures of around ₹2 billion were repaid in May.
Looking ahead, OPG Power said its earnings before interest, tax, depreciation and amortisation and profit after tax are in line with financial 2023 market expectations, and can thus focus on ‘enhancing shareholder value.’ The company did not provide further details.
Non-Executive Chair Narayanan Kumar said: ‘The company zeroed in on profitable operations and delivered an exceptional performance and cash generation in what may be termed as ’a difficult year’. With the softening of global coal demand and increase in coal production, most of the global benchmarks are now moving closer to their long term averages signifying return to rationality in the markets.’
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