OPG Power Ventures Plc (LON: OPG) have seen their shares soar on Thursday afternoon after the firm reported interim profit gains.
OPG operates and develops power generation assets in India and currently has 414 MW in operation principally under the group captive model and 62MW of Solar assets.
Shares of OPG Power soared 20.63% to 19p. 28/11/19 14:50BST.
OPG proposed an interim dividend on Thursday after profit and revenue rose from a year ago after the firm tightened focus on its profitable assets.
For the six months ended September, pretax profit widened 28% to £9.7 million from £7.6 million the year prior. This was after revenue rose 0.6% to £78.4 million from £77.9 million the year before.
OPG proposed a 0.6 pence per share interim dividend. The firm did not pay a dividend the year prior.
“Two years ago the board adopted a strategy to focus on our profitable, long-life assets in Chennai and to deleverage in order to deliver growth in shareholders’ equity by the transfer of value from debtholders to investors,” Chair Arvind Gupta said. “This process continued successfully during the first half of this financial year.”
“By maintaining our sector leading operational performance, we intend to sustain the rate of term debt repayment with the objective that in 2023 we will be debt free,” Gupta added. “As interest costs decline in line with borrowings we will generate increasing levels of free cash flow which, in due course, will increase shareholder value substantially.”
The energy and power sector has been busy across the last few days of trading and updates are provided.
Oracle Power (LON: ORCP) have seen their shares rise as they received overseas investment, Active Energy (LON: AEG) have seen progress in their Canadian operations.
Additionally, Union Jack Oil (LON: UJO) have seen their shares crash following a share placing announcement whilst competitor Egdon Resources (LON: EDR) saw their shares boosted following two renewed gas licenses.
