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KSK Power Ventur PLC (KSK)

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Monday 16 August, 2010

KSK Power Ventur PLC

Interim Management Statement

RNS Number : 0966R
KSK Power Ventur PLC
16 August 2010
 



16 August 2010

KSK Power Ventur plc
("KSKPV" or "the Company")

 

Interim Management Statement

 

KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, today issues its Interim Management Statement for the period from 1st April 2010 to the date of this announcement.

 

The period witnessed various important steps forward on the Group's power project execution capabilities as well as improved trading performance over the comparative period last year, both in generation and tariff realization. Some of the milestones achieved in KSK Energy Ventures, the listed Indian subsidiary of the Company during this period as announced on 9th August 2010, include:

 

·     Superior Operational performance during first quarter (both on account of Plant Load Factors (PLF)) as well as higher tariff realization on the Arasemta, Sai Regency and Sitapuram projects

 

·     Operational stabilization of both VS Lignite (135 MW) and the first unit of Wardha Warora (135 MW) being achieved, post completion of certain test protocols and planned reliability shutdowns during the period.

 

·     Boiler light up and commencement of steam blowing with respect to the second unit (135 MW) of the Wardha Warora project. Grid synchronization and commencement of coal based generation are to follow

 

·     Construction progress on both Unit 3 and Unit 4 of the Wardha Warora achieved. Target to achieve significant completion progress in the next two quarters

 

·     Shipment of power plant equipment material from China, as well as civil works at site on the 3.6 GW KSK Mahanadi Power Project. SEPCO, the main contractor along with its sub contractors are mobilized at site

 

·     Completion of the permitting and environment hearing for the KSK Dibbin Power project in Arunachal Pradesh. Work on land acquisition as well as the bid/ tendering mechanism for project construction has been initiated

 

·     Significant steps taken with respect to other thermal projects and large hydro projects in Arunachal Pradesh for the next level of asset and portfolio growth

 

 

Additionally, the Company through its unlisted Indian subsidiary, KSK Energy Company Private Limited continued the non-power generation business initiatives of the Group, with a focus on the development and financing of vital support infrastructure such as water intake, power evacuation arrangements and coal transportation for the 3.6 GW KSK Mahanadi power project. Some of the specific initiatives initiated the period include

 

·     KSK Mineral Resources, leveraging the development expertise gained during the development of the Gurha (E) lignite mine in Rajasthan, is currently facilitating one of the mine block development for the 3.6 GW power project. Also, efforts are being made to undertake similar development efforts for other coal blocks outside the group.

  

·    KSK Water Infrastructure developing the water pumping, pipeline infrastructure and intermediate water storage reservoir for the project

 

·     KSK proposes to undertake the works and  development of the railway siding as well as other rail transportation infrastructure for transport of coal from the mines to the power plant

 

During the period, as part of its strategy to consolidate its interest in the Indian listed subsidiary and  ensure an  orderly disposal of the Lehman shareholding in the Indian subsidiary; the Company has entered into a supplementary development agreement with Lehman Brothers pursuant to which the Company has been granted a right to acquire from LB Mauritius I Limited the entire share capital of LB Mauritius III Limited, which in turn holds 13.7 million shares (3.67%) in KSKEV for a fixed consideration of USD 52.7 million The necessary debt financing has been arranged to secure such right as well.. 

 

Further to this and as announced on 9th August 2010, the Company has been recently notified by Sayi Energy Venture Limited (the holding company that represents the interest of Directors i.e. Mr. S.Kishore and Mr. K.A.Sastry and GE Capital) that GE intends to convert a part of its current equity holding at unlisted Sayi Power Energy Limited into a direct equity shareholding in KSK Power Ventur plc. Upon completion, this is expected to bring down the direct equity holding of Sayi Energy Ventur Limited in the Company from the current 71.67% to 69.36%.

 

Outlook

 

The Company is currently working on an exciting portfolio of power projects and new opportunities. Our project implementation approach and methods are delivering progress, although the slower manpower ramp up by local contractors in specific projects continues to be difficult to predict. We are increasingly confident that the recent improved effort on the execution across various areas will be sustained and it is anticipated that 862 MW would be commissioned in its entirety before the end of the financial year.

 

 

For further information, please contact:

 

KSK Power Ventur plc

Mr. S. Kishore, Executive Director

Mr. K. A. Sastry, Executive Director

 

+91 40 2355 9922

Arden Partners plc                    

Richard Day / Adrian Trimmings

 

+44 (0)20 7614 5900

Financial Dynamics                      

Jonathan Brill / Billy Clegg / Ed Westropp

 

+44(0)20 7831 3113

 

                                                             

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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