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India focused OPG Power Ventures (LON:OPG) said its latest generating plant would be up and running by the end of next month as it unveiled a 32% quarter-on-quarter hike to output.
All that is required is the completion of new transmission lines into the 300 megawatt Gujarat operation to have it up and running.
Currently OPG is generating at a rate of 628mln kilowatt hours and is receiving 5.25 rupees per kilowatt hour.
The load factor (electrical demand) for its established plants was a creditable 92%.
“With our newly constructed assets continuing to ramp up, the overall trading outlook for the rest of the year remains in line with market expectations and we look to the future with confidence,” the company told investors.
Separately, OPG revealed its credit rating had been upgraded to single-A status, which it said “provides a platform to explore refinancing options”.
It currently has five plants in operation in Gujarat and Tamil Nadu states.
On 270 megawatts of output, OPG produced £100mln in revenues for the year March, giving underlying earnings of just over £33mln.
The broker Cantor Fiztgerald was satisfied with the OPG’s as it repeated its ‘buy’ recommendation and 134p a share price target.
Analyst Adam Forsyth said: “Overall we see this statement as a confirmation of the continued progress towards strong cash generation from the 750MW portfolio and building a strong foundation for further opportunities.
“The shares have fallen back slightly in the past week which we see as unjustified.”
At 11.20am, the stock was changing hands for 99p, valuing the business at £350mln.