GKO Greenko

TIDMGKO

RNS Number : 2426V

Greenko Group plc

24 October 2014

24(th) October 2014

Greenko Group PLC

("Greenko" or "the Group")

Trading Statement

Greenko, the Indian developer, owner and operator of clean energy projects, today provides a trading update for the first half of its 2014-15 financial year, covering the period 1(st) April 2014 to 30(th) September 2014:

   --     Trading is in-line with market expectations 
   --     Power generation increased by 89% to 1,225 GWh, compared to the same period in the last year 
   --     Installed capacity increased by 136 MW to reach 697 MW in the period 
   --     136 MW of new wind capacity commissioned in the period 
   --     Acquisition of 70 MW Budhil hydro project in Himachal Pradesh, completed in June 2014 

Operational projects

Overall, the Group's operational performance was in line with expectations during the period. Although the monsoon started late, it remains ongoing in certain locations, and Greenko's wind assets and the Northern hydro cluster all performed well. Budhil Hydro 70 MW acquisition performed in line with our expectation in the first year.

Power generation increased by 89% in the period to 1,225 GWh, with 525 GWh coming from the wind portfolio and 533 GWh from the hydro portfolio. This significant growth, combined with a better generation mix, is expected to result in first half revenue growth of over 120% and EBIDTA growth of approximately 130% compared to the same period last year.

Projects under construction

Greenko remains on track for its operational portfolio to exceed 1,000 MW in 2015, with all projects currently under construction fully financed, on time and on budget.

Wind Projects

In line with our broader strategy to have Utility Scale large wind farms, we had opened three wind farm projects, Ratnagiri Wind, Rayala Wind and Basvanbagewadi during the last year. Post the first phase of these projects, we have now successfully installed additional capacity on a modular basis which entails shorter time periods, and have currently completed 384 MW of capacity to date, of which 136 MW has been generated during the current fiscal period.

We currently have another three wind farms, Tanot Wind, Vyshali wind, Animala Wind with total capacity under an advanced construction stage of 338 MW. Firm orders have been placed with the vendors to execute these projects to be operational for the 2015 Wind Season.

Hydro Projects

Greenko currently has six hydro projects under construction, with a total capacity of 188.6 MW. The largest of these is the 96 MW Dikshu project in Sikkim, which is roughly 80% completed and is on track to commence commercial operations at the start of the 2015 generation season. The other five projects are at various stages of construction, with commissioning schedules falling between late 2015 and early 2016.

Outlook

The backdrop for renewable energy in India remains positive, as conventional power assets struggle to supply power to the grid due to fuel supply and off-take price issues. Greenko's wind and hydro portfolio are now profitably supplying power below the price of conventional generation in many states of the country.

Anil Chalamalasetty, CEO and MD of Greenko, said: "Our portfolio approach continues to deliver strong results. In the first half of the current financial year, we have added 136 MW of new wind capacity and achieved an 89% increase in power generation compared to the same period last year. Our ongoing initiatives to reduce our cost of debt, through our recent US$550 million Bond issue and the US$125 million investment from EIG earlier this month, should further enhance our financial performance and afford us the flexibility to offer greater shareholder returns. As the Indian energy market becomes increasingly favourable towards hydro and wind power, we remain very optimistic about the sustainability of our solid operational and financial performance."

-Ends-

For further information please visit www.greenkogroup.com or call:

 
 Greenko Group plc                             +44 (0) 20 7920 3150 
 Anil Chalamalasetty/Mahesh Kolli/ Vasudeva 
  Rao Kaipa 
 
 Arden Partners plc                            +44 (0)20 7614 5917 
 Richard Day/Steve Douglas 
 
 Investec Bank plc                             +44 (0)20 7597 4000 
 Jeremy Ellis / Gary Clarence 
 
 Tavistock Communications                      +44 (0)20 7920 3150 
 Matt Ridsdale / Mike Bartlett/ Niall 
  Walsh 
 
 

About Greenko

Greenko is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India utilising a de-risked portfolio of wind, run-of-river hydropower, natural gas and biomass assets. The Group is now focused on building new utility scale wind farms and hydropower projects across India. Greenko intends to increase the installed capacity it operates by winning concessions to develop and build new greenfield assets, as well as making selective acquisitions which enhance shareholder value. Greenko's portfolio is carefully planned and managed to ensure it offers investors diversification and spreads its risk across a number of projects that utilise various well-proven environmental technologies.

The Company's goal is to reach 1,000 MW of operational capacity in 2015 and approximately 2,000 MW in 2018. With a core belief in sustainability both operationally and environmentally, Greenko endeavours to be a responsible business playing an important role in the community beyond its role in the power generation industry. The Company maintains a continuous involvement in localised projects and community programmes which centre on education, health and wellbeing, environmental stewardship and improving rural infrastructure. Greenko Group plc was admitted to trading on the AIM market of the London Stock Exchange (LSE: GKO) in November 2007

This information is provided by RNS

The company news service from the London Stock Exchange

END

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