Opg Power Ventures Share Discussion Threads

[ballychan] 20/5/2016 10:30

Hope to see cash collection up, more debt paid off and a dividend timetable

[azalea] 20/5/2016 08:24

Morningstar shows brokers consensus Eps growth forecast for 2016 & 2017 at 45.86% and 30% respectively.

[jhan66] 19/5/2016 17:04

Morningstar says prelims are due on 2nd June.
Not expecting anything good though.

[eddie1980] 19/5/2016 16:52

Very little information is given from this company!

They still have not confirmed when 2016 results will be out.

Nothing on their sudden future strategy change to solar (because no money for any more coal plants!)No specifics on sites, size, funding, impact on results, when etc etc...

Just very little. I just hope nothing suddenly comes which is a show to the market...

[grabster] 19/5/2016 11:47

Poly - don't be daft - Azalea doesn't think! He recites from scripture.

[polythene] 19/5/2016 09:42

What do you think Azalea?

[marvelman] 19/5/2016 09:05

....and so it did...and still able to buy on mid. Surely a holding anouncement due to give us a clue to who the hell it is.

[marvelman] 19/5/2016 08:47

Buying being done below the mid now so clearly set to go lower.Surely must be one hell of a determined seller out there.

[grabster] 12/5/2016 12:05

The OPG share price is no higher than it was two years ago. All gains in between then and now have been wiped out. In fact it is now where it was seven years ago. Every rise along the way has collapsed.

Those who bought after igoe started this thread will have done very nicely if they sold at over 100p.

[source] 11/5/2016 22:05

...yep, looking like it wants to go down and test previous lows...(as I've mused before). Regards,Source

[grabster] 11/5/2016 08:12

The situation is not as rosy as azalea would have everyone believe. Credit rating is sound, but prospects are constrained. I can imagine people considering this a 'hold' if it were paying a worthwhile dividend perhaps, but it doesn't shout 'Buy' at present. I can understand investors thinking there are better places to move their money to.




Rating Rationale:

The rating assigned to the long term bank facilities and short term bank facilities of OPGS Power Gujarat Private Limited (OPGS Gujarat) for aggregate amount of Rs. 2062.40 crore factors in credit enhancement in form of letter of comfort provided by OPG Power PLC (OPGPLC) rated CARE A.

The ratings of OPG Power PLC (OPGPLC) derives strength from its experienced promoters and management, diversified client base (industrial consumers) which ensures lower consumer concentration risk, reasonable track record of commissioned projects, presence of PPA of 564MW (out of 724MW operational capacity), completion of the all the major projects under construction and no major expansion along-with adequate leverage and debt coverage indicators.

The ratings, however, are constrained by the weak credit profile of TANGEDCO (current off-take of 157MW, post May 2016- 80MW) is sold, un-tied capacity of 67MW in Gujarat Plant (300MW) and exposure to volatility in foreign currency exchange rate movements on account of reliance on imported coal.

The ability of OPGPLC to secure PPAs for the un-tied capacity (67MW) at lucrative rates is the key rating sensitivities
--------------------------------------------------

and at ICRA:



ICRA has upgraded the long-term rating from [ICRA]A (pronounced ICRA A) to [ICRA]A+ (pronounced ICRA A plus) and reaffirmed the short-term rating of [ICRA]A1 (pronounced ICRA A one) outstanding on the term loans, fund based facilities and non-fund based facilities of OPG Power Generation Private Limited (OPGPL) aggregating to Rs. 2380.65 crore1 (enhanced from Rs. 2280.65 crore )

2. The outlook on the long-term rating is Stable.
The upgrade in the long-term rating takes into account the successful ramp up of operations of the company’s fourth power plant of 180 MW capacity that has led to improvement in the overall revenue size and cash accruals of the company. The rating upgrade also factors in the shift in sales to group captive consumers from TANGEDCO3
for two of the company’s power plants from October 2015, thus reducing the counter-party credit risk associated with TANGEDCO which has a weak financial profile.
The ratings continue to favourably take into account the healthy operating performance of the company’s power plants and the favourable margins in the business given the subdued international coal prices coupled with remunerative power tariff rates in Tamil Nadu owing to the energy deficit scenario prevalent in the state. The ratings also take into account the low fuel supply risks owing to the in-place Fuel Supply Agreement (FSA) with Mahanadi Coalfields Limited for indigenous coal and regular short-term agreements tied-up with Samtam Co Limited as well as traders for imported (Indonesian) coal. The company’s financial profile remains robust characterised by healthy profitability levels and debt coverage indicators and a strong liquidity profile.
The ratings however remain constrained by the absence of long-term power purchase agreements for three of the four power plants of the company which exposes its profitability to the renegotiated prices once the existing agreements expire. The company is currently selling power through medium-term agreements (upto March 2018) to captive consumers from two plants, while the other two plants supply power to TANGDECO through a short-term agreement (currently till May 2016) and a long-term agreement (upto December 2028). Of the two plants supplying to TANGEDCO, the plant with a short-term agreement is witnessing delays in collections of receivables of more than six months, though the delays in collections are much lower for the second plant and the sales are backed by LCs. The ratings are also constrained by the significant reliance on international coal which exposes the company’s profitability to the movement in international coal prices and foreign exchange rates.

Company Profile
OPG Power Generation Private Limited (OPGPL) was incorporated on 21st February 2005 as a Special Purpose Vehicle (SPV) with the objective of setting up a captive power plant. OPGPL was promoted by OPG Energy Private Limited and Kanishk Steel Industries Limited belonging to the OPG group founded by Mr. O.P. Gupta. OPGPL commissioned its first power plant, i.e. 77 MW coal based power plant under Phase-I, in April 2010 and a similar power plant under Phase-II in October 2012, at Gummidipundi near Chennai. Subsequently, the company commissioned its third power plant of 80 MW capacity under Phase-II (Expansion) in June 2013 at the same location and its fourth power plant of 180 MW capacity under Phase-III in May 2015. The promoters have met the equity requirements for the power plants largely through the funds brought in by OPG

1
100 lakh = 1 crore = 10 million
2
For complete rating scale and definitions, please refer to ICRA’s website www.icra.in or other ICRA Rating
Publications
3
Tamil Nadu Generation and Distribution Corporation Limited

[grabster] 03/5/2016 08:02

I agree - nobody should take Azalea seriously. His wishful thinking and blatant pumping has never been borne out by actual share price movement other than random ticks.. He has been doing that long enough for all followers of this stock to know that. He will doubtless continue to churn out the same message regardless. And will doubtless have the nerve to claim credit for any upward movement, despite being so often wrong. Like a stopped clock, his Pollyanna postings will obviously coincide with a couple of moments that tally now and then, that's all.

[source] 03/5/2016 07:14

Thanks for the insight Jozo! Very helpful. I've also been thinking this needs to revisit lows as a test and properly reflect the delays it's had in delivering it's business plans. Will probably hold through but I agree there is something fishy about the current price levels. Regards,Source. P.S. Totally agree with you regarding the pump and dump behaviour of the local rah rah Azalea. No one should make the mistake of taking his opinion seriously.

[jozo] 01/5/2016 22:12

I think mms playing games here to mask various sellers - I had to sell my entire holding 3 weeks ago (89,000) due to a new commercial investment in my Sipp - the share price had just nudged up like it has the last few days - there was a lot of negotiating between broker, MM and myself for an agreeable price - I was told there was another large seller in the market and that I would have to accept less than the market price - I needed to free up the cash as settlement date on property was due so didn't really have an option - strangely my trade has not directly shown up to date.I still believe in opg and will reinvest once funds become available - however I don't see where this is going in the short term - any buyers are being soaked up by significant sellers. Mms are working the market accordingly to balance proceedings. Opg clearly struggling to convince market of its long term strategy.Good luck to all - will be looking to re-enter once picture becomes clearer and current selling finishes.JozoPs azalea- you really do take the pump and dump biscuit - any prospective investors please take any recommendations, figures, etc from azalea with massive pinch of salt - he has his own agenda and is clearly very short of his anticipated exit point.

[azalea] 29/4/2016 08:27

OPG could be on a roll here, the only surprise is why its take so long to see the share price start its recovery.

[igoe104] 29/4/2016 08:23

Here, here.

[rivaldo] 29/4/2016 08:18

Nice to see the price up for a second day in a row. Back to 100p soon :o))

[source] 29/4/2016 08:03

what is interesting about today's downtick then azalea?

LOL
Regards,
Source.

[azalea] 28/4/2016 15:38

The bid was up 0.5p early morning on very light volume.

[ali47fish] 28/4/2016 12:41

what tick up is that ?

[azalea] 28/4/2016 12:23

An interesting tick up this morning a month ahead of Prelims.

[azalea] 25/4/2016 16:17

Not to worry about the word thematic, whether you understand it or not. Stick to the well tried theme of judging a company on its track record regarding the basic criteria. Ptx, Eps, dividend. In OPG case,its Eps has always been in positive territory since its first plant started supplying power and earning revenues. With the forecast of earning 7p for each of its 351m shares in issue in the FY year ending March and 9.1p in 2017, producing electricity in a market where demand has consistently exceeded demand and likely to do so for years to come; one must ask what other company is there that can match OPG performance and potential.

[marvelman] 25/4/2016 14:51

Just shows you how little you know about the markets Jeffian. A thematic buy is a...well its a sort of...its actually a...no its not its a buy but not as you would normally think of it....actually I havn't got time to explain just now..will explain later.