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5 Oct 2015 07:01
5 October 2015
OPG Power Ventures plc
("OPG", the "Group" or the "Company")
Chennai sales contracts - diversification
Flexible business model facilitates multi - year power purchase agreements for 337 MW out of 414 MW Chennai plant output with a variety of counterparties
The Company is pleased to announce that as of 1 October 2015, the Company's sales mix at its Chennai plants has been changed as a result of the Company entering into three year, agreed volume contracts with industrial customers. These customers, typically engaged in heavy industry, will consume the electrical output from Units II and IV of our 414 MW Chennai plant. Prices achieved on sales to these customers are linked directly to regulated industrial customer tariffs in Tamil Nadu which remain considerably higher than long term national average power tariffs. Based on the prevailing average regulated tariff, the previously estimated average tariff expectation across both the Group's Chennai and Gujarat plants for the current year remains at around Rs 5 per kWh following the execution of these contracts.
An additional 74 MW of capacity from the Chennai III plant is already signed up to a 15 year variable tariff agreement entered into in January 2014. The balance of the Group's output from Chennai I will be available for sale directly to the state and other customers on short term contracts.
The overall impact is that OPG will have a 414 MW site in Chennai, Tamil Nadu, one of the fastest growing states in India, with a diversified customer base and with most output being sold on multi-year contracts at the historically most attractive tariffs achievable in the sector. The Board believes this diversification adds further to the robustness of the entire business.
Trading update for Q2 FY16
A trading update for the period ended 30 September 2015 will be released by 31 October 2015.
For further information, please visit www.opgpower.com or contact:
OPG Power Ventures PLC | +91 (0) 44 429 11 211 |
Arvind Gupta / V Narayan Swami / Ajay Paliwal |
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Cenkos Securities (Nominated Adviser & Broker) |
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Stephen Keys /Camilla Hume | +44 (0) 20 7397 8900 |
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Tavistock |
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Simon Hudson / James Collins | +44 (0) 20 7920 3150 |
About OPG
OPG operates and develops power plants in India, principally under the group captive model, and currently has as an operational capacity of 750 MW. In the year ended 31 March 2015, the Company operated 270 MW of assets and generated revenues of approximately £100 million, EBITDA of £33.4 million and earnings per share of 4.91 pence.
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