LONDON (Alliance News) - OPG Power Ventures PLC said Tuesday it expects to see a slight reduction in revenue due to lower demand for electricity during a period of heavy rainfall around Chennai, India, the company continues to trade in line with market expectations.
The company said that its 414 megawatt plant did not suffer any damage as a result of the heavy rainfall and remained available for production throughout the rains, in particular due to the design of the plan incorporating drainage systems for excess water.
"Drainage was in fact effective to the point that we were able to assist local communities by making available our drainage systems and expertise for the considerable relief efforts that were required nearby," the company said.
However, as a result of the rain, there was lower electricity demand and grid availability, which will lead to the reduction in revenue.
Elsewhere, the company has agreed a contract with the Tamil Nadu Generation & Distribution Corp to supply it with all the of the output from one of its 77 megawatt units at a net tariff of INR5.05 per kilowatt hour until the end of May 2016, which it said is "indicative of demand being restored post the rains".
"The people of Chennai bore the brunt of recent weather events, and I'm humbled by their resilience. Our board would like to recognise our team for making sure that we were able to provide active support to our neighbours at a time of great need. Our business has also demonstrated its resilience in limiting any impact from recent events and activity is now returning to normal," said Chief Executive Officer Arvind Gupta in a statement.
Shares in OPG were down 1.2% at 71.40 pence Tuesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Opg Power (OPG)