OPG Power Ventures PLC (LON:OPG), the developer and operator of power generation plants in India, said it expects full-year earnings and dividends to be in line with market forecasts as it updated on progress in the first quarter of the new financial period.
In the three months to June 30, total generation was 1.25bn units, up 27%, while the plant load factor was 78% for its Chennai facility and 79% for Gujarat.
Coal prices expected to fall in 2019 and beyond
This compares with the national average of 57.2% for thermal power projects in the country.
A drag on performance will be exerted by international coal prices, which have risen unexpectedly since June and will have an impact on current-year results.
Experts expect prices to fall to more normal levels in 2019 and beyond.
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Chairman Arvind Gupta described the first quarter as “challenging” mainly as a result of the higher cost of seaborne coal.
“However, the business model remains robust and despite the challenging macroeconomic backdrop, I am pleased to be able to reaffirm our dividend guidance for full-year 2018,” he added.
Development work on the 62 megawatt Karnataka solar facility is underway, OPG confirmed.