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Results look decent. Already higher profit in half year than the full year ending March 2023 (at the OPG Generation in India level). This is the main comment:
During the half year ended September 30 2023, reduction in coal prices helped the Company in continued generation and supply under STOA & IEX to other states like Uttarkhand, Gujarat, Uttar Pradesh and Andhra Pradesh. TANGEDCO approved variable charges under LTOA helped in better revenue and margins. Reduced coal prices have also helped in reducing the cost of generation and supply.
Given the increase demand for Power in India, and clear guidance across all areas for local councils to run all plants at 100% lately, as well as the commitment to build new coal power stations in the short term, various companies listed in the BSE have had a re-rating.
The most relevant comps to OPG are Gujarat Power Industries (+55% in last 6 months) , CESC (+30% in last 6 months), NTPC (+35% in last 6 months), NLC (+78% in last 6 months), Reliance (+77% in last 6 months), Jaiprakash (+147% in last 6 months), Rattan India (+156% in last 6 months). OPG is up 50% as well but on an EV/EBITDA metric lags way behind its peer group. There's quite a bit more to run on this one I think.
Seem quite lazy to me. For one they have Debt of ~£40m for March 2023 with an Interest Payment of £3.2m for the year. Implied Interest Rate of 8%. Then in FY24 Debt is down to £25m with Interest Payment of £3.5m? Implied interest rate of 14%. Seems too much.
Capex is £100k each year. OPG carried out maintenance capex in FY23 associated with emission compliance that they had guided the market previously on (a few £m) so completely innacurate from Cenkos even for the current year.
Overall trading update was fine, main concern for me is the lack of engagement with investors, no offer for Q&A etc.
Great, thanks!
Anyone have access?
https://www.thetimes.co.uk/article/new-home-changed-name-and-fresh-start-for-arcturis-sg7jgfphr
Yeah what's even more bizarre was the CFO commenting on the announcement on LinkedIn. So he is "active" but not active enough to issue a formal RNS... I get that no trading update has been given because the prior quarter wasn't great so presumably they want to do a monster RNS incorporating everything at once (just surprised they are allowed to not publish material information such as debt raises).
1) Trading Update
2) Karnataka Solar Plants Divestment Update
3) Debt Repayments
4) Debt Raise
5) New 10% Shareholder
Elara exclusively advised OPG Power to successfully raise INR 750Mn NCDs
h***://www.linkedin.com/posts/elara-capital_elara-exclusively-advised-opg-power-to-successfully-activity-7064154349052043264-PjMw?utm_source=share&utm_medium=member_desktop
Looks like they raised the Non Convertible Debentures they announced they were looking to do in the BSE back in Dec 2022.
750m INR so ~£7.3m. Curious to see interest rate and what they are planning to use it for. Also shocking that there is no RNS for it.
That entity is the one that held their Gujarat operations which they defaulted on back in 2018. Guess the Lenders still havent done a deal on that but OPG will not make any money (or lose any money) from the liquidation.
Well well well, looks like OPG is not sleeping at the wheel after all. They are one of 18 companies that have submitted an expression of interest to acquire Coastal Energen's 1200 MW Thermal Power Plant in Tamil Nadu that is undergoing insolvency.
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Economic India Times – 5 May 2023
Vedanta, Torrent Power, Jindal Power and foreign investment fund Dickey Alternative Investment Fund are among 18 companies interested in acquiring Coastal Energen, a power-producing company undergoing an insolvency process, said two people aware of the development.
In February last year, the Chennai bench of the National Company Law Tribunal (NCLT) admitted the power producer for corporate insolvency after the promoter and lender failed in their repeated attempts to revive the company
The resolution professional, Radhakrishnan Dharmajarajan, backed by PwC India, Vedanta, Torrent and Jindal Power did not respond to ET's request for comment.
Dharmajarajan has admitted ?11,492 crore in claims by financial creditors, according to the company's website.
Avenue Capital backed Asset Reconstruction Company of India (Arcil) and Sherisha Technologies, which recently acquired a 22.7% stake in Anil Jain's Refex Industries, and also submitted separate expressions of interest. Surprisingly, even OPG Power Generation submitted an EoI for Coastal Energen. An OPG Group company Bhadeshwar Vidyut is separately undergoing insolvency proceedings wherein two of the largest corporate houses - Reliance Industries and Adani Power - have shown interest. The RP of Bhadeshwar Power has admitted ?3,463 crore claims.
Among others, Megha Engineering & Infrastructure, Sai Wardha Power, Shyam Sel and Power, Abhinand Ventures, Hindustan Thermal Projects, Jindal (India) and Prudent ARC promoted RKG Fund submitted EoIs, the people said.
Coastal Energen, an unlisted company promoted by the Ahmed Buhari family, operates two coal-based power units of 600 MW each in Tamil Nadu. Delayed payments from Tamil Nadu Generation and Distribution Corporation and the absence of a buyer for power from the second unit led to a stretched liquidity position, according to the ICRA report.
Lenders had accepted a debt recast plan submitted by the promoter in May 2019 which involved a settlement at ?3,100 crore and a 15% equity stake to lenders. Buhari had even deposited ?150 crore, half of the promoter's contribution towards the settlement with lenders. The promoter had tied up with special situation funds for financing the balance of ?2,800 crore of the settlement amount. However, the transaction did not close [....]
Yup, very quiet... We know Q3 to Dec-22 wasn't great from a financials perspective (still profitable but still running the plant at a low generation), hopefully Q4 to Mar-23 picked up in light of whats been happening across the state.
Some updates on demand for power in Tamil Nadu where OPG's plant is located.
1) State power demand crossed 18,000 MW for first time in history in late March 2023
2) State power demand expected to increase to 20,000 MW by 2025
3) Stated signed 3-Month PPAs for ~1,500MW from March to May for 8.50 per unit
Out of the 414 MW we have 80MW on a PPA with the State until 2028. Remaining Capacity is on short term contracts with industrials I think.
OPG Average Tariff achieved in 2022 (to March 2022) was 5.60. Average Tariff Achieved in H1 2023 (to September 2022) was 9.14.
Has anyone seen a breakdown of EBITDA by segment (Nutrition, Beauty, Ingenuity etc)?
Anyone have access to the updated Cannacord note from today?
According to Morningstar
Wednesday 29 March
OPG Power Ventures PLC Trading Statement
Massive selling volume all absorbed at no change in price today so looks like there's a solid buyer at this price. I personally think this is massively undervalued at these levels. Even if the new wells failed to add to production the company produces >3,000 boe/d and given cost of production will be making solid double digit profits next year at depressed Henry Hub gas prices hence trading at a low single digit P/E with a net cash position. No brainer.
Interesting. Pretty big commitment entering into a 10 Year Lease (with 5 Year Break Clause)
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Life Science REIT PLC on Monday said it agreed a letting of part of the ground floor of Building One at Oxford Technology Park to Arcturis Data Ltd.
The UK life science properties-focused real estate investment trust said the 10-year lease was completed on 5,509 square feet of office space at a rent of GBP28.66 per square foot.
Arcturis is a healthcare technology company applying "applying advanced analytics and machine learning to generate real-world evidence and novel healthcare insights in both common and rare diseases", Life Science REIT said.
The deal includes a break clause and rent review at the end of the fifth year.
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They sold everything
Results are out already for the Indian OpCo reporting on the BSE. They were only quarterly results to December so nothing special, a small profit. Will be more interested if we get a guidance for 2023 in light of drop in coal prices and any insight into tariff changes.
Forest Nominees (at Block Energy) is not necessarily the same people behind Forest Nominees here. Forest Nominees is a company which is entrusted to hold shares (and vote) on behalf of the ultimate shareholder. "Nominee" companies are typically used to conceal information about ultimate controllers. So Forest Nominees may have more than one client.
Still looking cheap!