OPG Power's revenue and profit climb on cheaper coal

27th Nov 2018 10:32

(Sharecast News) - OPG Power Ventures' interim revenue climbed on Tuesday after a "strong operational performance" saw an increase in the company's power generation.For the six months ended 30 September the India-based power plant operator's revenue stood at £77.9m, up 17.2% on the same period last year, as power generation jumped by 9% to 1.55bn units.However, increased costs of £54.4m, up by 21.2%, meant that operating profit rose by just 8.8% to £23.5m.The AIM traded company reported a £6.5m overall profit from continuing operations, jumping from £2.1m and aided by improved tariff prices and market coal prices.Cash and cash equivalents at the period end stood at £0.8m, down from £8.5m at the same point last year.Arvind Gupta, chairman of OPG, said: "We are pleased to have continued with our strong operational performance and maximised volumes from our Chennai plant. Healthy operational performance, an increase in tariffs and continued reduction in coal prices keep us optimistic about the prospects for the company in FY19."Gupta added that these factors should provide a basis for OPG to demonstrate "robust profitability" over the full year.OPG Power's shares, having fallen more than 80% since the start of last year, were up 9.59% at 12.00p at 1033 GMT.