OPG pleased with power development

India-focussed power generator developer and operator OPG announced its trading update for the year to 31 March on Wednesday, with total generation around 4.4 billion units up 30% from 3.3 billion units in 2016.

The AIM-traded firm reported a Chennai plant load factor of 76%, and 63% for Gujarat.

It said the Gujarat plant load factor was up from 52% in 2016, and was consistent with its long term target of 75%;

Management expect 2017 results to be in line with consensus expectations;, and claimed its group debt repayment profile was “significantly improved”.

It also reported that construction on the 62 MW Karnataka solar project was set to begin next quarter..

“During the year we stuck to our strategic priority of maximising the cash contribution of our existing assets and thereby making our business stronger for the long term,” said chairman Arvind Gupta.

“We have delivered on our commitment to start paying dividends following a continued strong performance by our flagship plant at Chennai.”

Gupta said that at the younger asset in our portfolio, Gujarat, its attention has been devoted to increasing the mix of higher value sales, accelerating slow receivables and establishing a significantly better debt repayment profile.

“We thus maintain our commitment to strong cash generation from our asset portfolio to fuel dividends and growth.”