Opg Power Regulatory News (OPG)

21 Aug 2008 07:00



OPG Power Ventures Plc

(the "Company")

Trading Statement

This statement provides an update on the performance of the Company for the period ending 30th June 2008, together with an update on the Company's key near term objectives.

Operating Review:

19.4 MW Gas-fired Plant at Mayavaram, Tamil Nadu

The 19.4 MW facility in Mayavaram ("OPGE") (in which the Company has a 44% economic interest) is in its fifth year of successful operation. Its unaudited headline trading figures for the quarters January to March and April to June 2008 are: 

Plants in Development:

10 MW Waste Heat Recovery Plant near Chennai

The Board is pleased to announce that commissioning trials have finished and grid connectivity is in place. Sales at this 10 MW waste-heat recovery facility at Chennai are expected to commence in August 2008 with optimum load factor and capacity anticipated shortly thereafter. 

77 MW Coal-fired Plant near Chennai

The construction of the 77 MW coal fired facility in Chennai has been further progressed. The component parts are being received on schedule and civil works are ongoing. The Directors expect that the plant will commence production in the first quarter of 2009, as planned.

2 x 135 MW Coal-fired Plant in Kutch, Gujarat 

As announced on 12 August 2008 the entire debt financing required for the 2 x 135 MW coal fired facility at Kutch in Gujarat has received credit approval. Documentation is now being progressed and is expected to be completed in September. 

Market Developments:

As previously announced the Company has entered into a coal purchase agreement with Knowledge Infrastructure for the supply of coal from Indonesia but is aware of the need to retain flexibility in terms of fuel source. Accordingly the Company had ensured all the plants were designed so as to be able to burn any combination of Indonesian or Indian coal. The Directors previously applied to the Ministry of Coal, Government of India for an allocation of Indian coal to supply the OPGPG 77MW plant which they are pleased to announce has now been approved. This provides the Company with an alternate and stable supply of coal which is able to satisfy the entire fuel requirements of the plant.

The Directors are currently in negotiations regarding a similar linkage for the OPGG 2x135MW plant. 

Demand for power continues to increase in India and, in particular, in Tamil Nadu and Gujarat, where the Company is building power plants. The Company's power plants are required to sell a minimum of 51% of the power to captive customers and the balance can be sold to power trading companies. It is noteworthy that power trading companies have recently increased the prices at which they are willing to purchase power and are now paying significantly higher prices than the Utility tariffs of approximately 11 c per kWh. 

The Directors are pleased with progress made since flotation and believe that the Company is well positioned to deliver significant shareholder value. 

The Company's next financial release will be in respect of the interim results for the period ending 30 September 2008.