OPG Power Ventures plc Trading update and Update on Annual Accounts (3812N)

TIDMOPG

RNS Number : 3812N

OPG Power Ventures plc

22 September 2023

22 September 2023

OPG Power Ventures plc

("OPG", the "Group" or the "Company")

Trading update, Update on Annual Accounts and Suspension of shares from trading on AIM

OPG Power Ventures plc (AIM: OPG), provides the following trading update and an update in relation to its audited annual report and financial statements for the year ended 31 March 2023 ("FY23 Accounts").

Macro Outlook

In the current financial year, the macro environment has improved with international coal prices having softened significantly and the electricity demand trend remaining healthy due to an improvement in economic activity. The Government of India, in order to reduce dependence on imported coal, has opened the mining sector to private players and traders. In the long term, this will lead to an influx of cheaper Indian coal in the domestic market.

During the current fiscal year, cumulative electricity demand has increased by nearly 9 per cent y-o-y. Due to this consistent growth in power demand and in the absence of any major increase in capacity additions, India is still dependent upon coal-based generation. The lower-than-expected addition in FY24 from the renewables sector will lead to an increase in Plant Load Factors of thermal power plants in the country.

Trading Update

As announced in the trading update on 20 June 2023, the Company reported total generation for FY23 of 1.5 billion units and repayment of Non-Convertible Debentures totalling GBP19.7 Million ( 2 Billion) in May 2023. The Company's FY23 financial results are expected to be in line with market expectations.

With a continual downward trend in coal prices, the industry and the Company are seeing significant growth and OPG expects materially increased generation and revenue in FY24 with plant load factors expected to increase to approximately 58%. In addition to the Long Term Power Purchase Agreement with Tamil Nadu State utility for 74 MW, the Company secured a contract in September 2023 with another State utility up to 280 MW at an attractive tariff which is valid for five months during H2 FY24.

OPG is pleased to announce that as at 31 August 2023 the Group had cash and cash equivalents of GBP42.4 million and gross debt of GBP23.8 million. Due to realisation of receivables, net cash as at 31 August 2023 was GBP18.6 million, compared with net debt of GBP9.3 million as at 31 March 2023.

The numbers mentioned in this section are unaudited.

Update on FY23 Accounts

The Company is required under AIM Rule 19, to publish its FY23 Accounts, by 30 September 2023. There has been a delay in the financial reporting close process for the FY23 Accounts and as a result the audit has been delayed. The annual audit for FY23 is still ongoing and the Company currently expects the audit to be completed and the FY23 Accounts to be published by 31 October 2023.

As a result of the delay to the audit process, the Company's ordinary shares will be suspended from trading on AIM with effect from 7.30 a.m. on Monday 2 October 2023, pending publication of the FY23 Accounts. The temporary suspension from trading on AIM will be lifted once the FY23 Accounts have been published.

Notwithstanding the suspension of trading in the Company's ordinary shares, with effect from 2 October 2023, the Company will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM Rules and other applicable regulation.

Change of Name of Nominated Adviser and Broker

The Company also announces that its nominated adviser and broker has changed its name to Cavendish Securities plc (formerly Cenkos Securities plc) following completion of its own corporate merger.

Certain information contained in this announcement would have been deemed inside information as stipulated under the UK version of the EU Market Abuse Regulation (2014/596) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time, until the release of this announcement.

For further information, please visit www.opgpower.com or contact:

 
 OPG Power Ventures PLC                   Via Tavistock 
                                                  below 
 Ajit Pratap Singh 
 
 Cavendish Securities Plc (Nominated       +44 (0) 20 7 
  Adviser & Broker)                            220 0500 
 Stephen Keys/Katy Birkin 
 
                                        [phone] 
 Tavistock (Financial PR)                          3150 
 Simon Hudson / Nick Elwes 
 

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September 22, 2023 05:09 ET (09:09 GMT)