KSK Power Ventur revenue surges, loss narrows

(ShareCast News) - Power project company KSK Power Ventur announced its final results for the year to 31 March on Tuesday, posting a 76% increase in gross revenue to $674.5m.The AIM-traded firm's gross profit improved by 124% to $231.3m, with a 296% increase in operating profit to $160.5m.Its loss before tax improved somewhat to $109.7m, from a loss of $160.1m in 2015.The movements were on account of higher power generation for the period, including a partial year of operation of the entire 1,200 MW at KSK Mahanadi and a moderate increase in plant load factor at Sai Wardha, KSK reported.It added that during the current year, the results could be further enhanced as a result of improved operating performance on the same installed generation capacity base."The financial year to 31 March witnessed the company's power plants' aggregate gross generation reaching close to 10 TWhs," said chairman TL Sankar."With the various challenges and operational issues at Sai Wardha and KSK Mahanadi have now been addressed, it is anticipated that gross generation will continue to increase during 2016-17."Sankar said it is further anticipated that during the current year, the Indian Government will use an auction process for coal linkages.Coal linkage requirements of all independent power producers with existing commitments to distribution companies will be subject to auctions, Sankar said, resulting in a correction in fuel linkages for the sector as a whole."KSK Mahanadi, with existing PPAs to multiple distribution companies, is well positioned to take advantage of the new policy and will be able to satisfy KSK's coal requirements," Sankar added.The company said that additional debt funding for the KSK Mahanadi power project, used to cover the significant fluctuation of the rupee on project imports and to extend timelines, has been agreed by the consortium of project lenders and progress on the next two units has restarted, with an early completion expected.It added that it is currently in discussions with a number of potential strategic and financial investors for equity participation at the KSK Mahanadi project."Discussions with all stakeholders regarding financing arrangements have been positive and the company is confident that, with support of its lenders, progress on KSK Mahanadi can be achieved," Sankar explained."Our strong performance during the year would not have been possible without the continued support of our shareholders, who have enabled us to pursue business opportunities despite challenging market conditions."