Indian coal-based power plant TPCIL's profit hit S$7m in 9M16

This is despite its second unit's shutdown spanning half a month.

Indian coal-based power plant Thermal Powertech Corporation India Limited (TPCIL) recorded 3Q16 earnings of S$7m, despite a 16-day shutdown of Unit #2 at TPCIL and weak spot market prices. Maybank KimEng notes that this suggests that the bulk of its profits were earned in 3Q16 as it just about broke even in 1H16.

TPCIL now has 86% of capacity under long-term power purchase agreements (PPA) and it expects contribution to steadily improve

UOBKayHian notes that TPCIL's S$6.5m earnings in 3Q16 reflect 2.5 months of operations (Unit #2 was down for 16 days or ~0.5 months in Sep), roughly working out to S$2.4m profit per month.

The figures, it said, imply that TPCIL can earn S$29m annually assuming 85% plant load factor (PLF) in a bear-case scenario.