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OPG Power Ventures PLC - private sector power projects in India - Reports reduced pretax profit for six months that ended September 30 of GBP7.4 million compared to GBP12.8 million a year before. Blames poor performance on significantly higher prices of international coal and freight. Revenue for the period increases by 54% to GBP55.6 million from GBP36.1 million.
Chair Arvind Gupta comments: "OPG's power generation recovered during the first half. However, the prices of international coal and freight significantly increased during the second quarter of financial year 2022 because of an unprecedented increase in demand for coal due to Chinese related geopolitical issues, revival of economies and heavy rains in certain coal-mining areas."
As a result of price increases, generation has been reduced in the new financial year, with this expected to affect "operational volumes, revenue and operating profit significantly" going forward. However, coal prices moderated in November, which provides company with confidence that the coal markets are normalising.
Current stock price: 12.16 pence, down 3.7% on Wednesday
Year-to-date change: down 23%
By Will Paige; willpaige@alliancenews.com
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