6 Aug 2015 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
6th August 2015
Mytrah Energy Limited
("Mytrah" or the "Company")
AGM TRADING UPDATE
At its AGM today, Mytrah, the India-based renewable focused Independent Power Producer, will provide the following trading update.
2015 has seen the commissioning of 14.5 MW to bring our operating wind capacity to 543 MW, excellent progress on our new projects in construction, and our entry into the Solar business.
The Company has secured sanction for senior loans of INR 5.95 billion (approx. USD 95 million), supporting an additional 100 MW of wind capacity, which brings our fully funded wind construction pipeline to 250 MW. The projects in construction are developing well, with substations largely finished, civil works underway and wind turbines currently in manufacturing. In line with our previous guidance, we aim to bring 200 MW online before the wind season in 2016.
As part of our continuing capacity expansion, we have formed new relationships with wind turbine manufacturers General Electric and Inox Wind. Joining our 3 existing suppliers, GE and Inox Wind provide further diversification in our turbine technology and security of supply for our wind construction pipeline.
Our growing capacity and reputation has also enabled us to attract additional finance. We have raised a total of USD 130 million since November 2014 and we are pleased now to welcome Goldman Sachs as one of our investors, joining Apollo Funds and Merrill Lynch International in the most recent tranche of this financing earlier in the year.
Our 543 MW operating portfolio is performing well technically, with some plants exceeding 99% mechanical availability. The wind season started more slowly than expected, but we have seen improvement in July and expect that this will continue through the remainder of the year, bringing the full year result broadly in line with our expectations.
The power industry in India continues to develop favourably for Mytrah. A widely publicised Government target, aiming for 170 GW for wind and solar capacity by 2022, has attracted international players to the market, raising the profile of Indian renewables globally.
Along with some other technologies, this target is made up of 60 GW of wind and 100 GW of solar. As the cost of solar has now fallen toward parity with other technologies, we believe that it offers a strong diversification opportunity for Mytrah, provided that it does not compromise our returns. We have therefore participated in a number of state solar bids, most recently in Telangana, where we bid for 350 MW. Following the conclusion of the bidding process, we understand that the Company may have won the rights to connect a substantial portion of the 350 MW, but do not yet have formal confirmation. The Telangana offer is a 25yr power purchase agreement (PPA) at a fixed tariff. Projects need to be constructed within 12 - 15 months of signing of the PPA. We will provide further information in due course.
We believe that Mytrah's continued access to financing, our strong pipeline of development opportunities, and our proven execution capability will enable the Group to continue to grow rapidly and generate significant value for our shareholders.
For further information please visit www.mytrah.com or contact:
Mytrah Energy Limited
Ravi Kailas / Bob Smith +44 (0)20 3402 5790
Investec Bank plc
Chris Sim / Jeremy Ellis +44 (0)20 7597 5970
Mirabaud Securities LLP
Peter Krens / Rory Scott +44 (0)20 7878 3360
Yellow Jersey PR Limited
Philip Ranger / Dominic Barretto +44 (0)77 4778 8221
About Mytrah Energy Ltd.Mytrah Energy Ltd. (AIM: MYT), the pioneer and one of the largest Independent Power Producers ('IPP') in renewable energy, in India, with 543 MW of wind power generation across 10 projects and 6 States. The Company has 172 wind masts installed across multiple states in India, providing a rich source of information from which to select its future projects. Mytrah currently has an active development pipeline of about 3500 MW of wind and 500 MW of solar.