OPG Power Ventures (LON:OPG) reported a strong operational performance and said new projects were on track in a third-quarter trading update this week, leading broker Cenkos Securities to lift its 2014 earnings forecast by 6%.
Cenkos said it has only tweaked its 2015/16 forecasts but will return to these when OPG releases its full-year results.
“OPG has released a strong trading update indicating that the group’s existing plants are performing well whilst construction of the two additional plants is progressing ahead of schedule,” said Cenkos analyst Andrew Blain.
The India-focused group confirmed that its full-year results are on target to meet City forecasts.
“Continued excellence at the operating level has seen the underlying run-rate revenue rise to about 1bn rupee per month, more than double last year,” Cenkos said.
It expects OPG to report a run-rate EBITDA approaching £100mln in 12 months’ time.
“The anticipated strong cash generation should enable the company to finance further expansion and commence dividend payments in due course,” it added.