OPG Power Ventures PLC (LON:OPG) has reported a record production year in 2018 as well as tariff increases for the coming year.
In a trading update, the AIM-listed India-focused power plant developer reported that total generation for the 2018 financial year was up 10% at 4.8bn units compared to 2017, while in the quarter 1.1bn units were generated, up 15% on the same period a year ago.
The group also said sales tariffs at its Chennai plant had been increased by 4% for the 2019 financial year.
The firm added that its 62 MW Karnataka solar projects had been commissioned and were expected to contribute to earnings in 2019.
OPG also said that the Gujarat Distribution Companies of the State Electricity Utility ("DISCOMs") was no longer levying cross-subsidies on its customers, with £7mln of dues already recovered by the Group.
Additionally, the firm was undertaking a strategic review of its Gujarat plant following the successful resolution of its captive status with DISCOMs and had sold 5% of its equity interest in OPGS Gujarat.
Arvind Gupta, executive chairman of OPG, said: "This has been a record year of production for OPG, in which we have operated both our plants in line with our full year guidance. Improvements in the tariffs at Chennai for FY19 have provided us with some additional headroom for next year versus the prevailing coal price which, albeit is still high, is lower than recently.
He added: "With the commissioning of 62 MW solar projects in Karnataka, we now have a diversified portfolio of thermal and renewable assets which is strategically important in the modern environment and a key milestone for OPG. Following the resolution of the significant issues to do with recovering historic cross subsidy deductions made by Gujarat DISCOMs, the Board has decided to review its strategic options for the Gujarat plant and remains focused on the Group delivering strong operational and financial performance, to allow the Group to deliver true value to stakeholders."