Renergen narrows FY headline loss
Energy company Renergen has decreased it headline loss per share by 23 per cent for the year ended February, but the company's revenue also dropped by 27 per cent. Renergen says the R700 thousand drop in revenue was due to e COVID-19 lockdown which resulted in its subsidiary, Tetra4 not trading in April and May 2020. Renergen CEO, Stefano Marani joins CNBC Africa for more.
Mon, 31 May 2021 18:20:47 GMT
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AI Generated Summary
- Renergen reports a decrease in headline loss per share and revenue drop for the year, attributed to COVID-19 lockdown challenges.
- Key achievements include significant drilling results revealing vast helium resources, progress in plant construction, and the launch of the cryoVAC for vaccine storage.
- Future plans involve completing the plant construction, commencing operations, and targeting profitability to transition into dividend declaration territory.
Energy company Renergen has reported a decrease in its headline loss per share by 23% for the year ending in February. However, the company also experienced a drop in revenue by 27%. The CEO of Renergen, Stefano Marani, spoke with CNBC Africa to elaborate on the financial performance and future outlook of the company. Marani highlighted some of the key achievements during the challenging year, including significant drilling results that unveiled prospective helium resources of over 100 billion cubic feet. This substantial finding positions Renergen as a significant player in the global helium market, considering the world's annual consumption is estimated at 6 billion cubic feet. Despite the disruptive impacts of the COVID-19 pandemic, Renergen made considerable progress in the construction of its operations, achieving multiple milestones. The company managed to leverage the pandemic by developing and launching the cryoVAC, a storage solution for ultra-cooled vaccines. This innovation addresses the critical need for maintaining vaccines at the required temperatures, particularly in regions with limited cold storage facilities. Marani commended the team for their exceptional work in overcoming challenges and driving the company's success. Looking ahead, Renergen is focused on finalizing the construction of its plant and commencing operations, targeting gas production by the fourth quarter of the year and revenue generation in the first quarter of the next financial year. The company anticipates significant outcomes from its Virginia gas plant in the current financial year, with progress already made in equipment installation and operational readiness. Marani revealed that the initial production capacity of the plant, especially in helium and LNG, has already been allocated to customers, reflecting strong market demand for Renergen's products. The company is actively engaging with potential clients to secure additional LNG sales, driven by the growing interest in cleaner energy alternatives. The success of Renergen's innovations, such as the cryoVAC, is evident in the initial sales of storage units and the ongoing discussions for international expansion. The demand for specialized vaccine storage solutions remains high, considering the long-term need for cold storage of various vaccines, not just limited to COVID-19. Marani addressed the topic of profitability and dividend declaration, emphasizing that Renergen is currently focused on transitioning from a junior exploration company to a mature mining entity. Once the plant operations are fully underway and the company achieves positive earnings, Marani expressed optimism towards entering the dividend-paying territory. Renergen's strategic developments and operational advancements position the company for significant growth and market recognition in the energy sector. With a strong focus on innovation, sustainability, and operational efficiency, Renergen continues to pave the way for a successful future in the energy industry.