Opg Power Ventures Share Discussion Threads

[azalea] 19/6/2017 13:28

0.26p Int div was paid 28/2/2017

[polythene] 19/6/2017 13:20

I have had no dividend payout from OPG into my dealing account. Sorry, I know I should know, but was the maiden dividend paid out recently? I sold down a lot of my holding in the 50s so my messing with my holding might have confused things?

[azalea] 19/6/2017 13:02

55% below all time high, FY Div x4 Int div, a much strong IR v Sterling, lower costs of imported coal, huge increase in y-o-y revenues; will all contribute to significant rise in the share price on FY results.

[qs99] 19/6/2017 12:26

Thanks. also, as they continue (hopefully) to deliver, that NAV should rise sharply as the debt is paid down....let's see...maybe not for widows and orphans but a near 40% discount to NAV for a trading company like this IMO looks too wide...DYOR and IMO

[rivaldo] 19/6/2017 12:04

Here's the IC's tip FYI as it hasn't been posted yet:

"OPG Power Ventures (OPG) develops and operates coal-fired power plants in India and is moving into solar energy. As such, prospects are supported by strong tailwinds from the country's growing economy. In addition to this, OPG's foray into solar generation means it is also likely to benefit from the Indian government's commitment to increase its use of renewables and reduce its carbon intensity - the amount of carbon emitted per unit of energy consumed.

However, the group has come up against a number of challenges recently, which has sent the share price down, despite the likelihood that the issues will prove temporary. In the group's January trading update it outlined a triumvirate of negative events. The first was the de-monetisation of India's high-denomination currency, which had a short-term effect on consumer spending and demand for energy. The second was the death of Ms Jayalalithaa Jayaram, chief minister of Tamil Nadu, where the group's Chennai plants are based. This led to depressed commercial activity for roughly a week. Finally, the state was hit by a cyclone. This caused only minor damage to OPG's plant, but regional transmission infrastructure was severely affected, which again had an effect on commercial activity. According to the group's most recent trading update, the Chennai plant's load factor - the ratio of energy output compared to the maximum possible output of a plant - was pushed down to 76 per cent for the year to March 2017, compared with expectations of 80 per cent.

Overall, though, there are encouraging signs emerging. The group's Gujarat plant, which is younger than Chennai, increased its average plant load factor to 63 per cent for the year, from 52 per cent in 2016. The company has also made important progress in addressing payment delays by the state electricity companies and expects to get most of the money due in 2018. This has involved an amendment of the share capital rights in the Gujarat subsidiary. At the end of September, about £20m had been collected from OPG customers by the state utility and still needed to be paid over.

Meanwhile, even accounting for the lower-than-expected productivity, total generation for the Chennai plant was 12 per cent higher than in 2016. The group is also pursuing two solar projects, one 62MW development in Karnataka, of which 40MW has secured debt financing, with sanction for the remaining 22MW expected in the next few weeks. The group has also secured a letter of intent for a 25-year power purchase agreement for a 124MW project in Jharkand. Once these are completed, solar will account for 21 per cent of the group's generation capacity.

OPG POWER VENTURES (OPG)
ORD PRICE: 43p MARKET VALUE: £149m
TOUCH: 42-43p 12-MONTH HIGH: 74p LOW: 40p
FORWARD DIVIDEND YIELD: 2.3% FORWARD PE RATIO: 6

NET ASSET VALUE: 60p NET DEBT: 128%

IC VIEW:

The group has made good progress against its goals despite a wide range of one-off challenges. Importantly, this progress helps underpin Shore Capital's forecast of net asset value (NAV) per share of 68.6p by the end of the current financial year. The share price sits at a near-40 per cent discount to this forecast, and the shares also trade at a mere six times forecast earnings. While we acknowledge OPG has had difficulties recently, we think this is more than made up for by the value now on offer. Buy."

[andycapp1] 15/6/2017 19:07

And I suppose flowerpothead you will declare another triumphant profit if they go up a bit more! Well just to surprise you all, I was pretty much all the buying volume last week. So there you go, I've declared my hand, I'm back in again at 40p odd and we will wait and see what happens. It's fundamentally cheap although the management/minority discount concerns remain.

[luckymouse] 15/6/2017 02:05

No ambiguity there

free stock charts from uk.advfn.com

[azalea] 14/6/2017 09:26

A number of institutions are barred by their constitution from buying Aim stocks, others might be deterred by Mr Gupta's 50%+ controlling interest. However we know that OPG was the largest holding in a small Fund whose title I forget.70% of shares in major holders hands, might be a further obstacle. Mr Gupta has been extremely patient in waiting for the maiden dividend and I believe going forward will be very keen to see the FY div increase inline with profits. The price of solar panels has reportedly dropped significantly this year, so we shall have to wait and see if his investment will pay dividends there. FY results and its analysis by the IC and others, will tell us how cheap the share price is.

Edit:15:53pm At this rate we could see 1% of the shares in issue, traded by the end of this month if not well before.

[ballychan] 14/6/2017 09:03

Twisted - management have committed to paying out 15% of free cash flow, gradually increasing to 33% over the next 3-4 years.Macquarie have stated they believe the dividend will spike up next year due to higher than expected cash collection and lower debt repayments, due to the new debt payment schedule which sees them defer payments of circa £67m over the next 5 years. A considerable amount of money which can be used for dividends and I personally hope to fund more solar projects - they must continue to increase revenue.

[twistednik] 14/6/2017 08:42

Ah - just read a page back and see they were tipped in the IC and Shares mag. The volume is not that strong to be an institution so more likely a bounce on private investors buying after the magazine tip and chasing yield (aren't we all, and I'm not even retired ;).

Like all good Daily Mail tips, this leads to a short rally and then a pull back after the buying slows. There are also a lot of stale bulls in this stock (I was one!) who will exit on a slight recovery if there is not sustained buying by a much larger force. Will wait until above 55p to see if this run is sustainable.

Regarding the 7.1% yield for 2019 - I have probably missed the evidence that this is achievable! I bought originally as I thought this would be a good divi yield play and they went and blew the money on some hair-brained solar project!

Has management given a commitment to increasing the dividend sharply then next year?

[azalea] 14/6/2017 08:39

Not witnessed for some time, we are now seeing a daily spate of aggressive buying of stock. If it is maintained the MM will eventually have to up the share price in the hope of attracting sellers.

[igoe104] 14/6/2017 07:46

If opg have a of yield of 7.1% for 2019, I'm sure fundies will start to look at these.

[qs99] 14/6/2017 07:28

hopefully 50p+ today....GLA

[twistednik] 14/6/2017 07:24

Looking interesting again giving the volume and bounce... considering a small purchase. Cloesely monitoring.

[azalea] 13/6/2017 14:57

Very likely to see 1m shares traded before the close.

[azalea] 13/6/2017 10:17

Seller at circa 40p must be ruing the day, however with the share price still 55% below its highs, if they move quickly they could still get back below 50p, a window that will be closing by the day if not hour.

Edit: Currently second largest riser on the FTSE AIM 100.

[rivaldo] 13/6/2017 09:20

Great to see the rise continuing. Perhaps the seller really is out now. If so there could be quite a re-rating.

[azalea] 13/6/2017 08:37

2017-2020,`Pound sterling forecast to continue to fall against IR.

[qs99] 12/6/2017 22:14

looking forward to more tomorrow. Shame it couldn't quite get to an intra-day 50p+

[qs99] 12/6/2017 12:04

yup, looks like seller has cleared IMO given level of breakout.....obviously DYOR etc

[ballychan] 12/6/2017 11:10

Has the seller finally finished?! Fingers crossed the huge overhang is now cleared and won't return. Thanks Rivaldo for that snippet - very bullish comments around the dividend.

[qs99] 12/6/2017 11:07

little tree shake there and off we go again..

[qs99] 12/6/2017 10:22

indeed, thanks for posts and looking healthy for 50p today iMO

[azalea] 12/6/2017 09:34

There will be a few who cannot believe their eyes and cannot resist selling if only to get their money back. However, those staying in should keep reminding themselves the share price is currently circa 55% down from its high; when output and capacity was a mere fraction of what it is today.