- Energy Action (EAX) has withdrawn its 2020 financial year guidance, due to the uncertainty around the coronavirus (COVID-19)
- The company said that majority of its cash flow has been from high-quality longer-term contracts which should help to mitigate the negative impacts
- It also announced various cost saving measures such as Non-Executive Director, Mark de Knock retiring and reduced remunerations
- Energy Action is up 10 per cent on the market this afternoon, trading at 11¢ per share
Energy Action (EAX) has withdrawn its 2020 financial year guidance, due to the coronavirus (COVID-19) outbreak.
The company stated that due to the uncertainty around the virus it has decided to drop the guidance. Energy Action said that it maintains a strong credit quality and expects it to be in a stable net debt position at June 30.
The company also announced that majority of its cash flow has been from high-quality longer-term contracts, which was secured before COVID-19. This will potentially act as a safety net should the virus impact operations further.
It has also implemented measures to further manage the company’s cost base. Non-Executive Director, Mark de Knock, has retired from the Board, which will be effective from April 30.
“I would like to thank Mark de Kock for his contribution and service to the Energy Action Board over many years and wish him all the best for his future endeavours,” Chairman Murray Bleach said.
Further, the three remaining Board members will have the remuneration reduced by 20 per cent for up to six months. The CEO and senior management team will be doing the same.
CEO John Huggart says that the impact of the evolving COVID-19 situation continues to be felt across the Australian economy.
“The resulting uncertainty is constraining decisionmaking among some client segments, which began to weigh on the company’s revenue in late March,” he said.
“Given it is impossible to predict the duration and impact of the COVID-19 situation on the company’s future earnings, it is appropriate to withdraw our previous FY20 guidance,” he added.
Energy Action is up 10 per cent on the market this afternoon, trading at 11¢ per share at 1:13pm AEDT.