OPG (AIM: OPG), the developer and operator of power generation assets in India, announces its final results for the year ended 31 March 2020 (“FY20”).

FY20 Highlights

• Revenue up 9.5% to £154.0 million from £140.6 million in FY19
• Total generation (including deemed) of 2.72 billion units (2.71 billion units in FY19)
• Adjusted EBITDA of £31.2 million (20.3% margin) compared with £35.3 million (25.1% margin) in FY19
• Profit before tax from continued operations was £14.5 million compared with £16.9 million in FY19
• Term loans principal debt repayment £18.0 million
• Borrowings reduced with gross debt of £56.8 million*, compared to £80.4 million at 31 March 2019

Summary financial information

Post year end developments and highlights

• Six months period to 30 September 2020 average Plant Load Factor (“PLF”) was 46% (H1 FY19: 79%); in September 2020 PLF increased to 63%
• In June 2020, approx. £21.0 million (Rs.2 billion) was raised through non-convertible debentures (NCDs) with a three year term and coupon rate of 9.85%; the NCD’s proceeds were used to repay the FY21 and FY22 (i.e. up to March 2022) principal term loans obligations
• Total receivables from TANGEDCO at 31st March 2020 of £16.4 million (Rs.1.5 billion) were fully collected; there are no overdue monthly invoices from TANGEDCO
• At 30 September 2020 the Company’s gross debt amounted to £43.8 million, comprised of £21.0 million of NCDs, £21.5 million of existing term loans, with scheduled repayments spread from June 2022 to June 2024, and working capital loans of £1.3 million

Arvind Gupta, Chairman said:

“We delivered strong operational FY20 results and achieved significant deleverage as promised to our shareholders. COVID-19 and the lockdown had a severe impact on overall industrial activity in India and OPG’s operations at the beginning of FY21, but power demand gradually increased during the first half of FY21 and OPG remains profitable. We have worked hard to tackle the unprecedented challenges caused by COVID-19 and I am proud to report that we managed to significantly strengthen OPG’s balance sheet with issue of NCDs and collecting receivables from TANGEDCO. This will enable OPG to resume cash dividend payments to the Company’s shareholders in the medium term. I am pleased to report that our long term, profitable and sustainable business model remains unchanged.”

Results in full