OPG Power Ventures (LON:OPG) has strong assets that are on-stream, it benefits from rising prices and it is well funded, according to London based company researcher Hardman & Co.
In a report today Hardman says the company’s share price has suffered recently from poor publicity relating a shortage of supply to other coal fired power producers in India.
But of all the Indian power generated OPG is the most insulated from such problems, the report said.
According to Hardman, OPG is unique as its coal fired power stations are located on the coast, with good access to the ports in Chennai. As such it can, and does, burn both domestic and imported coal from Indonesia to generate its electricity.
Also OPG’s plants are designed to handle the Indonesian coal, which has a higher moisture content, as a result it is not hampered by operational problems, Hardman adds.
Hardman explains that the Chennai 1 power station operated a 92 per cent load last year, which it says is an ‘exceptionally figure’. And it says OPG is now looking for higher price tariffs in the current year.