gallant02
11 Aug 2015
Re: Solid Update A month later than expected and not overly informative. Although output increased over 30% the lower tariff means revenue up around 25%. Steady as she goes, I suppose it's good that they are so predictable, no shocks as such.I suspect a real surge in the sp will take a little longer.
tasagil
11 Aug 2015
Solid Update RNS this morning:-
gallant02
06 Aug 2015
On track for October switch on Guess this will have to do for an up-date..."OPG Power’s (LON:OPG) new power plants should be up and running in October as scheduled, according to Canaccord, which has just visited the sites in India.Capacity will rise to 750Mw when the new plants come on stream, which will drive strong cash flows and allow a reasonable dividend as well as reinvestment in new opportunities.The house broker has a price target of 134p currently, but said the potential for further capacity to be added at Chennai and Gujarat can lift this higher.“The Indian power market remains attractive to those who can execute and we think that OPG has proved itself several times over in this regard. “The two new coal-fired stations are the 180 Mw Chennai IV project and the 300 Mw Gujarat project. Chennai IV uses compact equipment which has allowed a larger plant to be built on a small site.Gujarat will be ready once the second transmission line is completed and Canaccord is confident its whole 300Mw will be available to make commercial sales from October.Meanwhile, competition in India has been hampered by the government’s de-allocation of mines and a reluctance of State Electricity Boards to sign long term power purchase agreements with these units.Against this background, OPG's flexible approach stands out with coal sourced from both India and Indonesia.Buy says the broker. Shares were 100p today."
gallant02
21 Jul 2015
Trading up-date Was promised to be released "mid-July", hope the delay means more good news worth waiting for....
tasagil
11 Jul 2015
Re: You are right in that assumption but like any currency exchange rate it is by nature very fluid.In the past year we have had the exchange rate as high as 103.5 and as low as 91.03. In 2010 it was at 65ish and yes that would help. I think it is as important to look at the dollar rupee rate as approx 70% of coal is imported and this is paid for in USD. OPG can do nothing about exchange rates but I'm sure the management will continue to look at favourable long term arrangements to mitigate any fluctuations. e.g. See the current agreement with Noble regarding the freight costs which will improve considerably from circa 2017.(See final results for year end march 2015).
evenlongershot
29 Jun 2015
£1 = 100 rupees Am I right in thinking that a strengthening pound against the rupee is bad for OPG? Back in April £1 bought approx 93 rupees and now it's more like 100 rupees. If OPG revenues are then translated into GBP reporting currency then isn't a strong sterling bad news? Clarification please?!
tasagil
22 Jun 2015
Re: Midas tip in Sunday Mail [link] pretty good write up which should (Grexit withstanding) educate new investors into the existence of OPG. There are a lot of good Aim Co's around but it is impossible to research all and this should act as a catalyst for a re-rating for the stock.
Ripley94
21 Jun 2015
Re: Midas tip in Sunday Mail nc
roco200
21 Jun 2015
Midas tip in Sunday Mail Got to be good news.Will we see a sp reaction tomorrow?
LuckyHooker
17 Jun 2015
Re: OPG's business model looks compelling Thanks for that gallant2.I invested a while back on a SCSW write up which saw the company as a potential multi-bagger over a 2-3 year outlook.This recent write up is also positive.I continue to hold.
gallant02
16 Jun 2015
OPG's business model looks compelling Proactive Investor:The share price movement in the past year has done little to reflect the progress made to date by OPG Power Ventures (LON:OPG).The India-focused generator, which is led by chief executive Arvind Gupta, has passed something of a landmark.It is generating 600 megawatts of electricity now that the 180 megawatt Chennai IV plant, in Tamil Nadu state, has gone into full commercial operation.September, it should be operating at 750 megawatts.Contrast this with a year ago when the switch on of the third Chennai power plant took capacity to 270 megawatts.So operationally, the company has come a long way in a very short space of time, with boss Gupta delivering the expansion plan on schedule and to budget.Yet the share price has been little moved in that time.For investors, this provides an opportunity – an entry point.Financially, the company will start to benefit from this buildout in the current financial year. In the one just gone, OPG posted revenues of £100mln and EBITDA of £33.4mln.The latter figure will more than double to £74mln in the current year and then move to £84mln for the year ended March 2017, according to the broker Cenkos. Debts, currently £260mln (giving a gearing of 59%), are forecast to fall to around £204mln by March 2017.Whisper it, analysts are even talking about OPG paying a dividend.As profitability grows, so the valuation starts to look compelling, based on Cenkos’ numbers.The enterprise multiple (which includes the impact of those debts) comes down from an historic 18 times to 8.1 this year and 6.6 next. Cenkos analyst Andrew Blain told investors: “With a step change in earnings and cash flow anticipated this year, we believe OPG stock is highly attractive at current levels.“A proven business model with significant expansion opportunities in a favourable macro environment makes for a compelling investment case; offering long term growth and income, we reiterate our buy recommendation.”At this point it is worth reminding ourselves of the OPG business model.Rather than go for broke (quite literally in the case of India’s dysfunctional power market) and building large, regional plants, the AIM-listed group has opted to develop smaller, modular units.And they are able to alternate between imported and locally produced coal to mitigate the input costs, while the model has always been to tap commercial demand for electricity. That said, today’s announcement revealed that Chennai IV will sell its output to the Tamil Nadu Generation and Distribution Company for 5.50 rupees per kilowatt hour effective until September.With OPG set to hit 750 megawatts later this year, it is eyeing further capacity expansion to over 2,000 megawatts, according to City broker Sanlam.Analyst Mark Cartlich in a recent note said the firm has the land to expand with the capacity for another 600 megawatts possible in Gujarat and 750 in Chennai.It also has the possibility to develop up to 300 megawatts of renewable power from a mixture of wind and solar production.Demand for electricity per head of population in India is rising strongly yet supply remains constrained.However, the outlook in India is looking brighter, due to, among other factors, Prime Minister Modi’s economic stance.In February, City firm Investec noted: "OPG is likely to ‘grow with India’ and consider investments across a broad technology spectrum from fossil-fuel fired power plants to renewables.“We see a strong rationale for OPG to participate in this process."It would involve OPG gradually becoming a multi-technology electricity generator, with diversification benefits in terms of operations.”
jonnydurex
03 Jun 2015
Re: Today's share trades Am now in profit!. Do feel patience will reward those happy to stay around-that includes me.-at the moment. gla jd
gallant02
03 Jun 2015
Today's share trades Over 1m already traded today vs 100k 90 day average suggests that the penny is finally dropping somewhere....
gallant02
03 Jun 2015
Re: Questor renew A link would help I suppose...[link]
gallant02
03 Jun 2015
Questor renew "Buy" recommendation Hardly pushing the boat out, but reads well....
