LONDON (ShareCast) - (ShareCast News) - Developer and operator of power generation plants in India, OPG Power Ventures, updated the market on its trading for the three months to 30 June on Wednesday, reporting total first quarter generation of 1.25 billion units - a 27% improvement over the fourth quarter of the 2017 financial year.
The AIM-traded company said first quarter plant load factor was in line with expectations at 78% for Chennai and 79% for Gujarat, as compared to the National Average PLF of 57.20% for thermal power projects, according to the Indian Power Ministry.

Since June 2017 forecast international coal prices had unexpectedly risen, the board noted, and that significant increase was expected to have a corresponding impact on the company's 2018 results.

"However, the coal price is forecast to fall to lower levels in 2019 and beyond," the board added.

OPG's dividend policy was to be maintained for the 2018 financial year, the board confirmed, and it reported "good cash collections" of TANGEDCO aged receivables in the year-to-date, as well as constructive dialogue on Gujarat receivables continuing with a positive outcome expected in 2018.

Development work on the 62 MW Karnataka solar project had commenced, the company reported, and it was on track for the current financial year.

The rollover of multi-year sale agreements was now negotiated for approximately two thirds of group capacity for the 2019 financial year onwards, the board said, adding that for the current year, the Chennai average tariff was expected to be around INR 5.00, and INR 3.80 for Gujarat.

An average tariff increase of 6% by TANGEDCO from the 2019 financial year in the state of Tamil Nadu was anticipated, the board said, as committed under the UDAY financing agreement.

"[This year's] results are expected to be announced by the week of 25 September ... with earnings and dividends expected to be in line with consensus expectations," the board added.

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