Opg Power Ventures Dividends - OPG

Opg Power Ventures Dividends - OPG

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Stock Name Stock Symbol Market Stock Type
Opg Power Ventures Plc OPG London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 12.25 07:38:50
Open Price Low Price High Price Close Price Previous Close
12.25 12.25 12.25 12.25 12.25
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Industry Sector

Opg Power Ventures OPG Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

dave4545: Jeez that current chart is evil and I always think of OPG as terrific value
timbob2000: Agreed Chalky, we're talking about a company making good money and reducing debt. Sure we have some headwinds, cost of coal, plus effect of covid but overall OPG are and have been heading in the right direction for some time now. Plenty of companies out there making big losses year on year and with increasing debt levels, yet valuations are far higher than OPG. My only explanation for the lack of interest from the market is because we're talking about a coal burning company.
andycapp1: How low is a low PER? Look the only attraction with this is return of huge wads of cash and fir this, as with all things OPG, you are utterly reliant on the largesse of the Gupta man. If he wants to sprinkle rupees then he’ll do it. Coal is a pariah and no institution wants it no matter how much cash, how low the EBITDA/PER ratios. It’s all about cash to motivate a buyer and in that regard Gupta will do a deal to take it private to keep it all for himself (I suspect). So wouldn’t touch now with bargepole. I’ve learnt my lesson with him.
beangrinder: I think we can stop looking at this one for another 6 months now. Maybe 2022 earnings will increase with slower implementation of environmental measures, less concentrated shutdown etc. Debt reduction continues steadily meanwhile and some cash dividend income will come in. On balance the risk of this investment is much lower than a year or two ago and it should be worth Edison's 42p...but when!
jozo: Hi Rivaldo, Agree it’s a very concerning story in India just now. It’s also really difficult to see how the short term will play out with Modi determined to keep everything going. I do think however, that plans to close state borders will not impact Opg too much. Also seems that Chennai is not one of the hotspots (see link below), so with state borders closed I wonder if the local economies will continue as normal with little or no effect on opg https://www.google.com/search?q=india+covid&client=safari&channel=iphone_bm&sxsrf=ALeKk01ZA1UyZBAQM5xkv3epzWFG8uONdQ%3A1619168185421&source=hp&ei=uYuCYJ-VF8KulwTX5afQCA&oq=india&gs_lcp=ChFtb2JpbGUtZ3dzLXdpei1ocBABGAAyCAgAELEDEIMBMggIABCxAxCDATIICAAQsQMQgwEyCAguELEDEIMBMggIABCxAxCDATIICAAQsQMQgwEyCAgAELEDEIMBMggIABCxAxCDAToHCCMQ6gIQJzoOCC4QsQMQxwEQowIQkwI6CwguELEDEMcBEKMCOgIILjoFCAAQsQM6CwgAELEDEIMBEMkDOgUIABCSAzoFCC4QsQNQhx1YrChg8jNoAXAAeACAAX2IAcIEkgEDMS40mAEAoAEBsAEP&sclient=mobile-gws-wiz-hp
stur7672: OPG (AIM: OPG), the developer and operator of power generation plants in India, announces that its maiden dividend, an interim dividend of 0.26p per share, will be paid on 16 February 2017 to shareholders. A scrip alternative was also offered. Ps if I remember correctly there was an issue and payment was delayed I think they also paid a final dividend in cash that year with scrip option.
jeffian: I'm not really following that. OPG has never paid out a (cash) dividend in their life. The last scrip dividend (share issue) was equivalent to 3.3% yield at the time of issue. Of course, scrip issues feel good on a rising share price, but not so good when it falls. Either way, I'm not sure I've had anything yet from OPG which is "spectacularly good".
tim000: As I understand it, the company has a contractual, fixed debt repayment schedule over the next 3-4 years which it can do nothing about, unless it is able to renegotiate the terms of the debt with the lenders. In the meantime, the recovery in load factors (over 70% in December) and low coal prices, plus the £9.5 mn windfall in November, has resulted in a massive cash build in Q4, which will continue going forward. It makes sense to return some of this surplus cash to shareholders by resuming dividends. Note also that the next scheduled dividend won’t be paid until near the end of 2021! By which time the company will be swimming in cash. This is now a high dividend yielding stock, with an increasingly robust balance sheet and growing demand for its output as the Indian economy booms. So great prospects for capital and dividend growth. An overlooked gem.
rivaldo: Here's the summary of Cenkos' upgrade to Buy: "Firing Up The Group’s cash generation and profitability remained robust in H1/21A despite the onset of COVID-19. This enabled the Group to pay down a further £8.2m of term loan principal, resulting in net debt declining 44.6% to £34.9m. In light of improving visibility in industrial electricity demand we release prudent FY21E and FY22E forecasts. We believe OPG is undervalued, trading at a c50% discount to its peer Group. We move our recommendation from Under Review to Buy. H1/21A Financial Performance. The Group’s profitability remained robust despite the onset of COVID materially impacting trading in H1/21A. Government enforced lockdowns caused a reduction in industrial electricity demand. In response OPG reduced plant load factors and in turn generation (H1/21A 831m kWh vs H1/20A 1,440m kWh). This reduction combined with a 1% decline in tariff to 5.60Rs/kWh caused revenue to decline 54% to £36.1m. Adjusted EBITDA, including a one-off £9.6m collection of accrued contractual claims, increased 16% to £19.4m. This in conjunction with lower coal and freight costs supported the Group’s margin profile. As a result, EPS increased 48.2% to 2.9p per share. Deleveraging Strategy. OPG has continued to deliver its deleveraging strategy, paying down a further £8.2m of term loan principal. The Group also refinanced a portion of its debt with non-convertible debentures (NCD), pushing repayments out to June 2022. As a result, net debt has reduced by 44.6% to £34.9m, comprised of £21.1m NCDs, £21.8m term loans, £1.4m working capital loans and £9.4m in cash. We expect the Group to fully repay its term loans by Q2/24, increasing free cash flow to equity and, in time, enabling cash distribution to shareholders via dividends. Forecast Re-initiation. We release prudent FY21E and FY22E forecasts in light of ongoing macroeconomic aberrations in India. We expect revenue of £93.6m in FY21E and £112.2m in FY22E. Importantly, due to a one-off £9.6m collection of accrued contractual claims, EBITDA increases 6% YoY to £33.0m and in line with lower tariffsand marginally higher input costs, declines to £24.7m in FY22E. As a result, we expect adjusted diluted EPS of 3.4p and 1.8p in FY21E and FY22E, respectively. Investment Case. We believe OPG trades below its fair value. The market continues to undervalue its improved capital structure, its highly profitable cash generative business model and the long-term structural dynamics for sustainable growth in the power generation sector. We believe the Group offers value to investors whilst trading at a c50% discount to its peer group (please see valuation section on page 7). We move our recommendation from Under Review to Buy"
thirty fifty twenty: I think OPG is a very interesting risk /reward situation at 18p. There are of course many risks which (I will outline at the end) but my strategy is looking for opportunities where the market is placing too much emphasis on the risks and thus the price is too low and has a chance to rise. I think that OPG have been increasingly clear about their debt reduction plans, and it is simple maths that as time goes by, they make profits, they generate CASH, they pay down debt and this increases the value of the shares. There are bumps (operational, plant upgrading, coal prices, customer contracts etc..) but the strategy is quite simple and supported by the fact that India is a growing economy. OPG very helpfully lays out the actual impact of this in the presentation. Taking their figures this is c.5p of value added to the shares this year and next year. That is equivalent to c.30% annual return! So even with a margin of safety there is a good chance of a 15% return per year (my strategy). What I think is interesting with these forecasts though is the following year. Next year it is assumed that PLF will be down to c.70% whilst upgrades are taking place but the following year it will be back to 75%+, turnover will be up and the EPS fcts for 4p for FY 2020 to c.5.5p for FY 2021. I note also that the Cenkos fcst makes no allowance for lower interest rates in FY 2020 so I think their 3.9p fcst for 2020 leaves something in the tank. CASH flow in FY2021 would thus add closer to 6p to shareholder value in FY 2021. On top of this there will be the CASH from the sale of the Solar assets (NBV = 15m, making 800k profit on 20% capacity. I have assumed future profits of c.3m and a sales price of > 20m (of which OPG have 30% and an option to buy a further 30%) i.e. I expect c.6m to OPG from the sale. This is another dent into debt, which because of the high interest rates in India would have a disproportionate impact on EPS. So for all things being equal then at 18p I can see possible returns of 5p, 5p and 6p over the next 3 years which is very attractive. The downside (for me) is the 15p support the price has seen over the last 4 months. Looking at the variables.... India - economy growth expected to increase to 7% next year. this should support future electricity prices. PLF - this year 75%-80%, next year with plant upgrade 70% (included in forecasts), medium term 80%+ Coal Price - most market forecasts are for lower longer term coal prices. For FY202 OPG have hedged 60% which means they can be certain of CASH flow to reduce debt levels. Coal Price - they are talking to miners about long term supply arrangements. This will be announced later in the year. This reduces the risk of market pricing and additionally gives even more certainty about debt reduction. Environment - Coal is here to stay in India b/c it needs so much energy. India is no longer building thermal plants but it just cannot afford to shut down the current ones. OPG has one of the lowest emission levels of thermal producers. Customers - they had extra capacity this year as some customers had reduced demand but did not sell it to new customers as they want to stick with their current client list and demand is expected to recover to normal levels in H2 Bad debt - this was a one off, long term dispute. It is notable that the PES of 2.0p for H1 is AFTER this bad debt charge. Interest rates - these are falling in India which will be a big benefit for OPG Tax Rates - India has reduced Corporation Tax Rate and indicated it will do so further Solar - they are talking to several interested parties. Size is 63MW and normal prices are c.800kUSD per MW = 50mUSD so for OPG 30% stake = c.12m GBP (my assumptions are OPG to only receive 6m) So I do expect bumps and volatility but the variables generally seem to be in OPG favour. The big negative that it talked about much here is Gupta and his 52% shareholding. Yes this exists but the other side of the coin is that he and the other directors (via LTIP) are very heavily incentivised to obtain a higher share price. In fact , I think it is reasonably obvious that at any time OPG could be bought by a multinational. The asset to that multinational would easily be worth 10 times EBITDA ie.. 360m less say 60m of debt = 300m (75p a share). As a PLC with one major asset, and a 52% CEO the listed price will always be much much less than this but as the debt is repaid the chance of a bid increases as the listed valuation is so much lower. This also puts a floor under the share price. All IMHO, DYOR + BoL OPG is in my top5 hldgs
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