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OPG Power expects a boost as coal price dips

Total production in the nine months to December rose 4.5%, with the plant running at 79% capacity
coal
Rising coal price have been a problem for OPG

OPG Power Ventures PLC (LON:OPG) expects to meet profit targets this year even though the largest of the four units at its Chennai power station has temporarily shut down.

A repair to a by-pass valve at the generator has taken longer than expected, but OPG expects the unit to be back up and running soon.

READ: OPG Power Ventures boasts “strong operational performance”

Total production in the nine months to December rose 4.5%, with the plant running at 79% capacity.

Average prices received rose by 7% following a tariff increase in October.

Coal prices, the plant’s primary feedstock, rose by 2% over the nine months but since September have seen a 4% decline.

Total debt at the period end was £87.5mln including term loans of £76mln.

OPG added it paid back the loan on the first generator at Chennai in December and is on course to repay the term loans on schedule.

“Looking forward to FY20, the company is expected to benefit from robust tariffs and the projected level of coal prices,” said the statement.

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