REG - OPG Power Ventures - Strategy and Board Update

OPG Power VenturesAnnouncement

04/04/2022 09:00

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RNS Number : 1191H  OPG Power Ventures plc  04 April 2022

4 April 2022

 

OPG Power Ventures plc

("OPG" or the "Company")

 

Strategy and Board Update

 

OPG Power Ventures plc (AIM: OPG), the developer and operator of power
generation facilities in India, announces an update to its strategy and
changes to the composition of the Board.

 

Due to supply chain disruption caused by COVID-19 and the recent and ongoing
global energy crunch, seaborne coal prices have experienced record highs.
While OPG is not changing its guidance for the year ended 31 March 2022, and
while the Company currently has adequate financial liquidity available to
mitigate the situation, management are taking measures aimed at limiting the
financial impact of this fuel price spike. These include sourcing more
lower-priced, moderate quality domestic coal to lower the Company's breakeven
cost levels.  Should the fuel price spike continue in the long term,
regulated power tariffs in India along with those charged by the Company and
others to industrial and commercial customers will be required to rise as
India continues to source electricity from non-renewable and renewable
sources.

 

OPG has long recognised the need to embrace clean energy.  Indeed, the
Company's longstanding and stated strategy has been to develop its Indian
commercial and industrial power generation portfolio in line with the clean
energy strategy of the nation, while not compromising upon financial
discipline.  The Board believes the current fuel price spike, India's
commitment to addressing global climate change and its need to be more
self-sufficient in energy, mean that now is an appropriate time to accelerate
the Company's energy transition strategy.  Consequently, the Board is
implementing the following changes:

 

(i)       Mr Arvind Gupta, Chairman, will step down from the Board with
immediate effect and be replaced by Mr N. Kumar as Non-executive Chairman

(ii)      Ms Avantika Gupta, who has served as the Company's COO since
2018, to be appointed as CEO with immediate effect

(iii)     A 'new energy panel' to be established within the Company
reporting to Avantika Gupta and the Board will augment its energy transition
expertise in the near future

 

Mr Arvind Gupta will be available to the Company to ensure an orderly
transition to the new Non-executive Chairman and CEO.

 

Commenting on the changes, Arvind Gupta said: "It has been an honour and a
privilege to lead OPG over the last 14 years. I am very grateful to our
talented team, as I am to OPG's investors and many other stakeholders, with
whom we have worked together to build long-term generation assets and a
sustainable business that fills an important energy gap in the industrial and
economic growth of India. This is the right juncture at which to refresh our
leadership and implement transition strategies to better serve the fast
growing and evolving energy needs of India's industrial growth. Our team has
achieved much in developing our 414 MW platform from minimal beginnings and I
am confident that OPG will achieve further success in the future."

 

N. Kumar, Non-executive Chairman, commented: "On behalf of the Board, the OPG
team and our shareholders I would like to acknowledge and thank Arvind for his
tireless service to the Company since its formation.  Since joining the Board
in November 2019, I have seen for myself that the Company has an ethos of
excellence, generating attractive returns and cash flows, deleveraging the
balance sheet, excellent stakeholder and customer relationships, and of course
safe and clean operations which provide an excellent platform from which to
continue our work.

 

The world's energy demands are changing rapidly in all sorts of ways and India
is at the forefront of those changes. Given the scale and diversity of the
work to be done and the opportunities that lie ahead, I look forward to
working with Avantika who has the right credentials and experience to make the
most of this platform and lead us into the new energy age.

 

We will be selecting the most appropriate technologies to build a portfolio
that contains the most efficient and smart sustainable solutions with our
investment in Atsuya Technologies Private Limited, a Chennai-based
sustainability solutions provider, which was reported on 23 February 2022,
being a stepping-stone. I look forward to the continued support and
encouragement of shareholders in helping this momentum to build on a programme
of projects and initiatives we are evaluating."

 

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

 

 OPG Power Ventures PLC                              +44 (0) 782 734 1323
 Dmitri Tsvetkov

 Cenkos Securities (Nominated Adviser & Broker)      +44 (0) 20 7397 8900
 Stephen Keys / Katy Birkin

 Tavistock (Financial PR)                            +44 (0) 20 7920 3150
 Simon Hudson / Nick Elwes

 

The information contained within this announcement is deemed by the Company to
constitute 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.

 

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