OPG Power shares surge after profit growth
Shares of OPG Power Ventures leapt on Thursday after it reported a rise in interim profits and said it was confident of ridding itself of debt in the next four years.
The India-focused power plant developer and operator booked a profit before tax of £9.7m for the six months ended 30 September, 28.0% higher than in the same period last year, as its cost of sales dropped by 12.0% to £47.6m and finance costs fell by 38.0% to £5.6m.
Consequently, the AIM traded company proposed an interim dividend of 0.6p per share, compared to no payout at the same point last year.
Revenues edged 1.0% higher to £78.4m and the company achieved an 18.0% reduction in gross debt to £70.7m.
OPG said it anticipated good profitability in the full year as it continues to benefit from the current level of coal prices, adding that it expected to maintain strong plant load factors of between 75.0 and 80.0%.
Chairman Arvind Gupta said: "By maintaining our sector leading operational performance, we intend to sustain the rate of term debt repayment with the objective that in 2023 we will be debt free. As interest costs decline in line with borrowings we will generate increasing levels of free cash flow which, in due course, will increase shareholder value substantially."
OPG Power Ventures shares were up by 23.81% at 19.50p at 1536 GMT.