REG - OPG Power Ventures - Trading Update

OPG Power VenturesAnnouncement

27/05/2025 07:00

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RNS Number : 0852K  OPG Power Ventures plc  27 May 2025

27 May 2025

 

OPG Power Ventures Plc

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

 

Trading Update

 

OPG Power Ventures plc (AIM: OPG), a leading developer and operator of power
generation assets in India, is pleased to provide a trading update in respect
of the financial & operational performance for the financial year ended 31
March 2025 ("FY25").

 

Summary

 

·   Total generation in FY25 was 2.323 billion units (PLF 69 percent), in
line with 2.322 billion units in FY24, reflecting consistency in operations.

·    Subject to audit, revenue and EBITDA for FY25, are expected to be in
line with market expectations.

·    Net cash position as on 31 March 2025 was approx.  £13.7 million
compared to £3.6 million as on 31 March 2024, demonstrating improved
liquidity position.

·    During FY25 coal prices moderated compared to the previous year,
resulting in average realised tariff of Rs. 6.92/kWh for FY25, marginally
lower than Rs. 7.52/kWh in FY24. The impact on operating margins was largely
offset due to softening coal prices.

·    For FY26, the PLF is expected to be at current levels of c. 70
percent, supported by a balanced sales mix of short and long-term contracts.

 

Macroeconomic Outlook

 

India's economy continues to display resilient growth with the International
Monetary Fund (IMF) projecting FY25 GDP growth at 6.2 percent and FY26 growth
at 6.3 percent. This makes India the fastest growing major economy in the
world. The IMF's latest forecast also indicates that India will be the
fourth-largest economy in the world in 2025, overtaking Japan. This expansion
is expected to further accelerate power demand, positioning thermal generation
as a cornerstone for energy reliability and security.

 

 

Sectoral Outlook

 

The GOI's FY26 fiscal roadmap reinforces its focus on strengthening power
infrastructure and advancing grid modernisation, fostering a stable
environment for capacity planning and dependable energy delivery. As part of
this commitment, the GOI has outlined plans to add significant new coal-based
thermal capacity by 2032, ensuring adequate base-load supply amid rising peak
demand and renewable variability. In this evolving landscape, OPG remains
well-positioned to benefit from these macroeconomic tailwinds through its
proven generation capabilities and agile market participation, supporting grid
resilience while aligning with national energy priorities.

 

India's power sector continued its upward trajectory in FY25, with total
electricity generation reaching 1,821 billion units (BU), a 5% year-on-year
increase over FY24's 1,733 BU. This growth was driven by strong industrial
activities, heatwaves and increased temperature, change in lifestyle and
rising urban consumption, all of which contributed to sustained high demand
across regions. The country's installed generation capacity stood at 475.2 GW
at the end of March 2025, reflecting continued expansion to meet growing load
requirements.

 

Thermal installed capacity crossed 220 GW, accounting for 47% of the total
installed base and essentially remains the bedrock of India's energy mix,
contributing over 73% of actual electricity generation in FY25. This
reinforces the indispensable role of coal-based generation in providing
reliable base-load power and balancing intermittent renewable supply.

 

India's coal supply dynamics further strengthened in FY25, with domestic
production surpassing 1 billion tonnes, a record high driven by policy
initiatives around mine auctions and commercial mining. This increase
supported a 5% reduction in thermal coal imports over FY24, reinforcing the
government's push for self-reliance in critical fuel supply. These
developments enhance long-term supply security, providing a stable foundation
for thermal power to continue playing a pivotal role in India's energy mix.

 

Despite a consistent push toward clean energy, the GOI's energy policies
continue to acknowledge the strategic reliance on thermal power, with reforms
easing coal availability and incentivising operational efficiency. As India
transitions toward a more diversified future energy mix, thermal power's
ability to respond to peak demand and maintain grid stability ensures it
remains a cornerstone of the national energy framework, underpinning both
energy security and economic resilience.

 

Regulatory Update

 

Further to the update provided in March 2025, the Company continues to extend
full cooperation to the Department of Enforcement and provide all the
requested information in a timely and transparent manner. The Company wishes
to reiterate that these proceedings have had no impact on its day-to-day
operations.

 

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

 

 OPG Power Ventures PLC                                              Via Tavistock below
 A P Singh

 Cavendish Capital Markets Limited (Nominated Adviser & Broker)      +44 (0) 20 7220 0500
 Stephen Keys/Katy Birkin/George Lawson

                                                                     +44 (0) 20 7920 3150

 Tavistock (Financial PR)
 Simon Hudson / Nick Elwes

 

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