- Renergen (RLT) has ended the six months to August 31 with a loss of 26.9 million South African Rand (R) (approximately A$2.3 million)
- Pleasingly, that figure is a 32.8 per cent decrease on the loss recorded by the company in the same period last year
- But, Renergen did see a decline in revenue as the coronavirus pandemic took its toll on the South African business
- The company’s group revenue decreased by 36.9 per cent in the six months to August 31, to total R900,000 (around A$76,782)
- Construction of the RLT’s New Liquified Natural Gas and Liquefied Helium plant saw Renergen’s equipment costs increase by 797 per cent
- Finally, Renergen ended the half-year with R250. 7 million (around A$21.4 million) worth of cash on hand, having drawn down its US$12.5 million (R216.3 million) Development Finance Corporation (DFC) loan in June 2020
- Shares in Renergen are currently worth $1.09, up 1.88 per cent
LNG and helium producer Renergen (RLT) has ended the six months to August 31 with a reduced loss of 26.9 million South African Rand (R) (approximately A$2.3 million).
That figure represents a significant 32.8 per cent decrease on the loss recorded by the company in the same period last year.
But, Renergen has seen its revenue decline in its half-yearly report as COVID-19 took its toll on the South African business.
The company’s group revenue decreased by 36.9 per cent in the six months to August 31, 2020, to reach R900,000 (around A$76,782).
Renergen explained the drop was due to coronavirus-related lockdowns, with its Tetra4 asset failing to produce any revenue between April and May because of the level five restrictions imposed by the South African Government.
The company also stood down all of its staff and instructed them to work from home from March 18, with operations reduced to critical team members only.
It wasn’t all bad news though — the company signed an agreement with leading oil and LNG provider Total South Africa, announced Prospective Helium Resources and South Africa’s first LNG auction.
Renergen also began construction of the new liquified natural gas and liquefied helium plant, pushing RLT’s equipment costs up by 797 per cent compared to the same time last year.
Specifically, the company spent R420.5 million (around $A35.9 million) on plant equipment in the six months to August 31, compared to R50.3 million (roughly A$4.3 million) in the previous corresponding period.
Finally, RLT ended the half-year with R250.7 million (around A$21.4 million) worth of cash on hand, having drawn down its US$12.5 million (R216.3 million) Development Finance Corporation (DFC) loan in June 2020.
Shares in Renergen are currently worth $1.09, up 1.88 per cent at 12:34 pm AEDT.