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The Markets
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The Markets
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Renewables & cleantech

OPG Power boasts “strong performance” against declining demand

"We are pleased to report another strong operational performance for the first nine months of FY20," said chairman Arvind Gupta

OPG Power Ventures PLC (LONOPG) has boasted “another strong operational performance” as it updated investors on trading across the first nine months of its financial year.

In a stock market statement, the Indian power firm said it generated some 2.09bn units of total generation in the period ended 31 December, compared to 2.15bn in the same period a year earlier.

It said that the plant load factor at its Chennai operation was 77%, compared to 79% in the 2018 period, and that power tariffs averaged Rs 5.67, up from the preceding comparative of Rs 5.33.

This performance exceeded the company’s expectations and comes against “subdued economic activity and a decline in thermal generation growth”, OPG noted.

READ: OPG Power Ventures shares boosted by interim results

OPG pointed out that the decrease in generation at OPG’s operations were due to decreased demand by automobile and steelmaking customers amidst moderating economic growth in the country.

The company noted that gross debt reduced by 22% to £62.5mln at the end of December.

"We are pleased to report another strong operational performance for the first nine months of FY20 and we expect to meet market profit expectations for our full FY20 results," said Arvind Gupta, OPG chairman.

OPG is to pay a full year scrip dividend of 0.6p per share in January.

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