OPG Power Ventures plc Strategy and Board Update (1191H)
04 Abril 2022 - 4:57AM
UK Regulatory
TIDMOPG
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:
+44 (0) 782 734
OPG Power Ventures PLC 1323
Dmitri Tsvetkov
Cenkos Securities (Nominated Adviser +44 (0) 20 7397
& Broker) 8900
Stephen Keys / Katy Birkin
+44 (0) 20 7920
Tavistock (Financial PR) 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.
-ends-
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