JSE-listed helium and pure fuel producer Renergen – in a ‘preliminary remaining report’ of its results for the year to end February 2022 printed on Tuesday – reported a 36.8% increase in revenue, attributing the development to increased vitality costs together with the easing of Covid-19 lockdown restrictions.
It reported that R2.6 million or 100% of the group’s revenue relied on the gross sales of compressed pure fuel (CNG) to at least one buyer – noting that its sole subsidiary Tetra4 is in the method of establishing the Virginia Gasoline Plant and conducting exploration actions. Its revenues have due to this fact been minimal so far.
The group confirmed an increase of R2.8 million in its working revenue because of a big increase in web international change beneficial properties.
There was a 33.1% increase in its tangible web asset worth per share, attributable to a R38 million increase in tangible belongings, primarily pushed by further investments in property, plant and gear (PPE); will increase in deferred tax belongings, working capital and restricted money, and a lower in lease liabilities, offset by will increase in borrowing provisions and money utilisation for the 12 months.
In keeping with the monetary assertion, an increase of 6.4 million in the issued share capital additionally impacted the tangible web asset worth per share.
This follows a surge in its inventory worth from R13 per share firstly of 2021 to R40.46 on the time of writing. The value reached a document excessive of R43.90 per share in March.
Virginia Gasoline Challenge
The group says it’s in the ultimate phases of commissioning the Virginia Gasoline Challenge which is predicted to function quickly.
A further R260.7 million was spent on the completion of the plant design categorised inside PPE.
Renergen introduced that chilly containers are being pre-cooled in preparation for fuel on the onshore petroleum plant. The plant web site, which is owned and operated by Renergen’s subsidiary Tetra4 and covers areas in Welkom, Virginia and Theunissen, obtained a R1 billion funding from the Central Vitality Fund (CEF) in March. In return, 10% of Tetra4 was offered to the state-owned fund.
The group says the analysis of the oil system is the following main merchandise to be accomplished for the unit’s begin up. Up to now, it has accomplished and commissioned hearth safety, instrument air methods and smaller sub-systems.
Renergen CEO Stefano Marani says: “The crew is being extraordinarily thorough and diligent in ensuring each step in the commissioning course of is completed accurately. A key focus space which has been efficiently accomplished is the testing and retesting of the hearth methods, notably in gentle of all of the latest plant failures globally. Seeing the plant at cryogenic temperatures is such a tremendous sight, realizing that that is quickly to develop into the primary business plant of its variety in South Africa.”
The group says it skilled important challenges throughout the development interval because of the affect of the Covid-19 pandemic and subsequent lockdown restrictions, nationwide strike motion by staff affiliated to the Nationwide Union of Metalworkers of South Africa (Numsa) and excessive climate sample modifications which have resulted in above common rainfall since December 2021.
“Regardless of these extenuating circumstances the crew has proven monumental maturity, resilience, and dedication to search out options to mitigate these challenges and scale back the affect on the general progress of the Virginia Gasoline Challenge,” the group says in its Sens assertion.
“The transition from largely a challenge firm to an operational centered firm is properly underway and we imagine we’re able to take the following step in our thrilling journey.”
Rising demand for helium
Renergen notes that the worldwide helium market has been dealt a number of debilitating blows lately, exacerbating quick provide in an already tight market.
As well as, it says progress in this market is predicted to be pushed by growing demand for helium from the healthcare, expertise and aerospace trade sectors.
“These are vital components that can proceed to form and handle how the group continues to develop the following part of the Virginia Gasoline Challenge.”
Nondumiso Lehutso is a Moneyweb intern.