LONDON (Alliance News) - OPG Power Ventures PLC Tuesday reported a rise in pretax profit and earnings in the recently completed financial year as it increased its power generation capacity and said it is "confident" of establishing a dividend and is committed to further profitable growth.
The developer and operator of power generation plants in India reported a pretax profit of GBP21.7 million for the year ended March 31, which was up from GBP17.9 million in the previous year, as revenue experienced a small lift to GBP100.0 million from GBP98.8 million whilst its cost of sales fell slightly.
Earnings before interest, tax, depreciation and amortisation rose to GBP33.4 million from GBP30.1 million.
"The team at OPG have achieved much over the last five years and have delivered compound earnings growth of over 40% per annum over the last three years. OPG is now set to achieve a new dimension as we start to generate cash flows from a significantly expanded, multi-locational asset base," said Chairman Manish Gupta.
Gupta said it he was "confident" of setting out a dividend path in 2015 and committed to generating continued profitable growth.
"This has been a period of tremendous progress for the company. We have run our operations at over 90% load factor and nearly trebled our available capacity from 270 megawatts to 750 megawatts. In so doing, we have also established a multi-location business, widened our core skills in areas such as transmission line construction, delivered an increase of over 20% in profitability and continued to actively manage our gearing and operational risk profile," said Gupta.
Still, OPG shares were down 2.5% to 97.00 pence per share on Tuesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Opg Power (OPG)