OPG Power Ventures PLC (LON:OPG) posted record annual revenues but rising coal prices hit profits and have also affected the current year.
The India-based electricity generator runs two thermal power stations and had already flagged that a spike in coal prices since the Spring was causing problems.
READ: OPG Power's 2017 earnings in line with forecasts, 2018 to be impacted by higher coal prices
Revenues jumped 60% to £205mln in the year to March as the amount of electricity generated from its two sites in the provinces of Gujarat and Tamil Nadu rose by 30% to 4.4bn units as new capacity came fully on stream.
Profits dipped to £17.5mln from £28.6mln although a tax credit boosted earnings to £23.1mln (£18.6mln).
OPG also paid a full year dividend of 0.98p, the company said in a statement.
Maiden dividend
Arvind Gupta, executive chairman said the current year would be one of ‘realignment’ after a good performance in 2017.
"The company has recorded its ninth successive year of increasing revenues.
“It has also been a year of rising earnings and our maiden dividend. This differentiates us.”
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"With coal prices continuing to point downwards, positive pipeline developments on tariffs and our renewable projects progressing, I believe the current year will prove to be a year of re-alignment, setting the business on its course to recover increased profitability in FY19 due to the prospective strong tariff potential and reduction in coal prices.
Gupta added, however, that OPG is reviewing all options to cover the possibility that coal prices do not fall to minimise the potential impact.