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1 May 2009 07:00
Greenko Group PLC ("Greenko" or "the Group")
Year-end close and Project update
The Directors of Greenko, the Indian renewable energy owner and operator, are pleased to give the following trading update for the year ended 31 March 2009. Despite the difficult global financial market conditions, the renewable sector in India remains robust and Greenko continues to leverage this to its benefit.
2008/9
The existing 6 Biomass plants have performed in line with forecasts, with significantly improved tariffs achieved at Sri Balaji and KMS power (from 3.2 to 3.8 Rs/Kwh), Roshni (from 3.2 to 6.00 Rs/Kwh) and Ravi Kiran power (from 3.1 to 5.00 Rs/Kwh) part way through the year offset to some extent by strategic shut-downs at certain plants. These new tariffs will have a strong impact on the profitability of the plants and the full impact will be apparent in the 2009/10 financial results. Further tariff increases are likely to be achieved as the energy shortage in India continues.
The CER market underwent a significant fall due a number of technical, economic and political factors with prices falling to below €10 per unit. The Directors expect that markets will recover and stabilize but since cash reserves are strong took the decision not to sell the planned level of CER's in the current year. As a result Greenko has retained 160,000 CER units in stock. This retention of CER's will be reflected in a shortfall of income against budget in the year ended 31 March 2009.
The strong performance of the existing assets has largely offset the decision to retain 160,000 CER's, so that the Company's earnings will be broadly in line with market expectation for the year ended 31 March 2009.
New Projects
The Directors are pleased to confirm that AMR and Rithwik, both 24.5MW run-of-the-river hydro plants, have been fully constructed. Following the commencement of the rainy season in India, which should start in June 2009, these plants will undergo the required regulatory testing prior to commissioning and the Group is confident of generating power at full capacity from these assets for the financial year 2009. In addition to this Sonna, a 10.5 MW run-of-river project, is approaching completion and will be ready to generate electricity in Q3, 2009.
The Group continues to identify and examine new projects and is fortunate that the current uncertainties in financial markets have increased the flow of such opportunities.
Enquires:
Greenko Group plc
Anil Chalamalasetty +91 (0)98 4964 3333
Mahesh Kolli +44 (0)7767 692729
Arden Partners plc
Chris Hardie +44 (0)20 7398 1630
Adrian Trimmings
Cardew Group
Rupert Pittman +44 (0)20 7930 0777
Jamie Milton
Catherine Maitland
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