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OPG Power shares up as it hedges price of 60% of coal requirement

Imported coal is one of the main raw materials for the Chennai power plant
coal
Chennai is a coal-fired power station

OPG Power Ventures PLC (LON:OPG) shares rose on Tuesday as the firm revealed it has hedged 60% of its coal requirements for this year against future adverse price movements.

The India based company operates a coal-fired power plant at Chennai,Tamil Nadu and the hedge covers approximately one million tonnes of coal between June 2019 and March 2020.

Imported coal is one of the main raw materials for the Chennai plant and OPG was badly caught out in 2017 and early 2018 when the price of seaborne coal rocketed.

Prices have eased recently and OPG said that with the hedge it now has greater visibility on the financial numbers for 2020.

These are in line with expectations, added the AIM-listed group.

In afternoon trading, shares in OPG Power Ventures were 4.8% higher at 19.25p.

 -- Adds share price --

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