Opg Power Ventures Share Discussion Threads

[andycapp1] 30/1/2017 16:15

I don't think a dual listing will help. What they need to do is stop putting our idiotic RNS's blaming everything but themselves, stop doing solar - which adds nothing really - and buy back some shares at 52p. Every man, woman and dog is jumping on the solar gravy train in India right now. OPG are too slow and ponderous to put together a portfolio of solar and in any case look at Mytrah. Lots of wind MWs financed mainly by debt; result a terrible equity rating.

[ballychan] 30/1/2017 10:26

This sector in India is very hot at the moment, so a listing over there would command a lot higher than 6x, which would trigger a rerate over here too.

[andycapp1] 30/1/2017 09:14

4.5% price downgrade by Cantor analyst today. Puts them on 6x EBITDA at the current price which is about right for dirty coal.

[s25ava] 26/1/2017 19:01

Jozo ..too right sold all today, not a big holding but £-200.

[eddie1980] 26/1/2017 13:29

On the recent posts on IPO and additional funds, this doesn't surprise me given their wish to go into renewables.

I use MYT as an easy comparable, as they are all renewable energy, but their level of debt is quite significant. The initial investment cost for renewables is very significant (they have close to $1bn debt I think for 1000MW of power), but funds and banks seem happy to lend against this for this type of power.

Whilst I am sure OPG would be able to get higher leverage than they do for the thermal plants, they were always going to need new investment to expand into renewables in a meaningful way.

Claiming they would be able to fund from generated funds would have meant very slow progress into renewables at a time when it seems all the Indian companies are going for as much scale as they can as quickly as they can which is typical for any newish market.

[source] 26/1/2017 09:48

Yep very odd. OPG seem to have a penchant for grasping at tangential matters as excuses for poor internal execution or prudent risk management planning. Not sure why this (or currency changes) is that relevant to a significant commercial concern that sells to businesses, not consumers who are more affected by these changes. OPG simply needs to meet or beat its eps forecasts and generate a tonne of cash to pay down its debts...a simple formula it should simply execute for success rather than finding an excuse almost every reporting period. Regards,Source.

[orinocor] 26/1/2017 09:13

"December 2016 witnessed the sad passing away of the Tamil Nadu Chief Minister, Ms Jayalalithaa Jayaram. Given Ms Jayalalithaa's immense popularity, commercial activity in Tamil Nadu was understandably at a low ebb for about a week just after her passing. "


I mean this is just stupid. Are we meant to believe the state was in mourning and stopped working because a government minister passed away? This is beginning to sound like Asian Citrus which was hit by the 7 plagues of Egypt.

[source] 26/1/2017 08:52

Maybe Ballychan, but they have got into a terrible habit of disappointing these past few years, which the market has started to recognise by not rewarding their positive statements in the shareprice and instead taking a "show me" approach recently. It's a poorly put together trading update today too as it gives no revised guidance on eps. I believe prior consensus was for 8p eps to March '17).Seems it will miss that now. ?-- Also recent rumours of dilution from an odd double listing only adds to further concern. Regards,Source.

[ballychan] 26/1/2017 08:33

This drops looks way over done. Against forecast £215m revenue they'll be £6m short - a 3% drop. Hardly a killer profit warning.

[spud] 26/1/2017 08:19

Topped up with a further 10k @ support.

spud

[par555] 26/1/2017 08:09

Lost patience here long ago.

Expecting a positive spin from azalea later - Don't disappoint !

[source] 26/1/2017 07:51

Ridiculous I agree. This management are really stretching for any excuse. With this level of poor execution I would think the last thing they should be doing is gimmicks like another listing that would further punish shareholders. Regards,Source.

[gscrawler] 26/1/2017 07:29

Not a great reading just excuses for underachieving.

Trading update

OPG Power Ventures PLC, the developer and operator of power plants in India, announces the following update. In early November 2016, the federal government announced the de-monetisation of high denomination currency (Rs.500 & Rs.1000 bills which amounted to 85.5% of the currency in circulation). This degree of overnight contraction in currency supply had an effect on short term consumer spending across the country, which has impacted some of our customers and therefore their near term demand for electricity. As the short term effect of this gradually subsides, there is a widely held view that the event will act as a significant positive on the long term sustainable growth of India's economy. We believe we have been able to largely mitigate the impact to date of this event through the diversity of our customer base.

December 2016 witnessed the sad passing away of the Tamil Nadu Chief Minister, Ms Jayalalithaa Jayaram. Given Ms Jayalalithaa's immense popularity, commercial activity in Tamil Nadu was understandably at a low ebb for about a week just after her passing. Shortly thereafter, Cyclone Vardah hit the northern parts of the state. This cyclone caused only minor damage at the plant, which was quickly returned to near full availability, but it severely impacted regional transmission infrastructure as well as commercial activity. As the transmission system is being restored and commercial activity for our customers is returning to normal, the Chennai plant too is gradually resuming full service with load factors expected to normalise from February 2017.

Taking the impact of these events together, the Board has refined its expectations for the Chennai plant to achieve a reportable load factor of approximately 76% for FY17 as a whole, compared with the expectation indicated at the time of the Company's half year results of around 80%. This corresponds to a reduction in revenue estimates of around GBP5-6m.

The Directors believe that the Group's modular assets, capex planning, gearing levels, dual location and highly diversified customer base enable the Group to manage the impact of such unforeseen events. In addition, the pursuit of a group captive business model has served to cushion against such unfortunate instances. The Board remains confident about the Group's prospects.

The

[the original goldbug] 25/1/2017 13:23

I imagine they are doing because their brokers felt they couldn't raise money at e reasonable price in London.

I suspect possible acquisitions are the reason for the move.

[source] 25/1/2017 12:59

Thanks Jeffian and Rivaldo. Hmm overall then I hope they do not do it. They should not need do do it and realistically There should be plenty of other things they should be doing to improve shareholder returns than this. Regards,Source.

[rivaldo] 25/1/2017 11:14

An additional listing in another country is commonplace - lots of UK-listed companies have US/Canadian listings just for starters. It just means there are additional shares issued overseas, and it enables to invest in companies which perhaps they may not otherwise be able to do because of tough currency/trading restrictions for whatever reason.

From here it's just a case of seeing what the issue price is, assuming it happens. This may not necessarily be bad/dilutive - it could of course be well above the UK share price if demand is good, the current share price is seen as undervalued and it's perceived to be an opportunity to quickly obtain a large chunk of the company in one go, which is difficult in the UK given the illiquidity. Now we wait and see.

[jeffian] 25/1/2017 10:11

#2985,

Well it would rather depend on how or if shares are offered to existing shareholders. Certainly the concept of an 'IPO' looks strange when the company is already publicly quoted. The issue, of course, is one of dilution if existing shareholders are denied the opportunity to participate. The worst excesses were carried out by the Russians (e.g. Sibir Energy/Sibneft) when shareholders would wake up to discover that so many new shares had been issued to the Russians that the UK investors were diluted out of sight!

[azalea] 25/1/2017 09:25

A combination of increased U.S. coal production by Trump and his equally non climate change believer energy secretary, reduced consumption of coal burning in China, which should reduce the price of coal, a stronger IR v GBP, and the use of OPG new 64k ton freighter to ship coal from Indonesia, should significantly increase profits and earnings this FY.

[spud] 25/1/2017 08:19

Taken 10k.

spud

[source] 24/1/2017 20:16

How's this meant to work? It is already listed here in the U.K. And owned by us as its lawful shareholders....Can't tell if this is good or bad for us. Regards,Source.

[rivaldo] 24/1/2017 13:35

Possible additional Indian listing being mooted to be managed by Deutsche Bank and ICICI, raising $150m-$200m:



Extracts:

"OPG said it will evaluate the IPO plan but denied it had formally hired investment banks for the share sale.

“We have been approached on the idea of the Indian IPO. However, we have not formally engaged anyone on the subject. It is still something that we will look into and evaluate with the other things that we are evaluating. Whatever we do pursue, we want it to be good for our existing shareholders,” said a London-based spokesperson for OPG Power Ventures over the phone on Monday. "

"OPG’s IPO plan comes at a time when the renewable sector in India has been witnessing high levels of activity both on the fund-raising front as well as in terms of mergers and acquisitions, on the back of high investor interest in the sector.

Prime Minister Narendra Modi is banking on renewables to fight climate change and has set an ambitious target of increasing India’s clean energy capacity more than fivefold to 175 gigawatts (GW) by 2022.

Several renewable energy firms have evinced interest in going public."

[source] 22/1/2017 10:35

Regards,Source.

[source] 21/1/2017 09:35

Those expensive tankers are looking much more of a bad buy again. Paying down debts would have been a better investment for shareholder value I think. (Or even better actually delivering on eps forecasts for a change!). Regards,Source.