OPG Power revenue and earnings ahead as chairman steps down

Developer and operator of power generation assets in India, OPG Power Ventures, announced its preliminary results for the year ended 31 March on Monday.

The AIM-traded firm said there was 80 MW of new capacity commissioned in the year, bringing the total operating capacity to 750 MW.

Revenue during the period was £128.4m, up from a flat £100m in the year to 2015.

Its EBITDA margin of 39.5% was up from 33.4% in FY15, with EBITDA of £50.7m up from £33.4m and profit before tax of £28.6m up by 32%.

OPG reported earnings per share of 5.29p, up by 8% compared with FY15, while its net debt increased slightly to £254.1m from £250.6m.

Looking ahead, the company said Q1 FY17 aggregate group revenues are around £57m, and average group plant load factor of 72%.

334 MW has been allocated to 2-3 year captive sales agreements at the Chennai plant, which the board said was transforming OPG’s sales mix.

Its initial target dividend of 15% of net earnings would commence with an interim dividend in calendar 2016, OPG’s board promised, adding that 62 MW solar growth projects are expected to be funded from a combination of new debt facilities and internal equity going forward.

“The OPG management team have much to be proud of upon the completion of their 750 MW programme,” said chairman MC Gupta.

“The company's results and continued growth in revenues are a testament to this.

£This positions the company uniquely well, in my view, to take advantage of the many good growth opportunities the Indian power sector will have to offer in the years to come,” Gupta added.

He said that, after the board announced a firm approach to dividends he has informed them of his decision to retire.

“I wish to thank my board colleagues and the entire team at OPG for their warmth and for their efforts in making this a company of the future,” Gupta said.

“I have every reason to believe OPG is well on its way to achieving its goal of leadership in the Indian energy sector.”