The Renergen Ltd (ASX: RLT) share price has had a positive afternoon in the green today, trading up 3.7% at $1.96 per share near the market close.
That’s a good bit better than the 1.3% gain posted by the All Ordinaries Index (ASX: XAO) at this same time.
Below we look at the quarterly activities report from the alternative and renewable energy company.
What results did Renergen report for the quarter?
The Renergen share price is on the rise after the company reported a 13% boost in revenues from the previous quarter.
While revenues were up, operating costs decreased 19% quarter on quarter, which the company partly attributed to the reversal of bonus provisions in place the prior year.
Along with other cost reductions, this resulted in a 15% decrease in losses for the quarter and in an improved cash position.
The company highlighted its position as a low-cost helium producer, saying it was “nearing positive earnings generation”.
Over the quarter, Renergen drew the final tranche of its United States International Development Finance Corporation (DFC) loan. This added US$7.5 million (AUD$10.4 million) to its cash reserves.
The company is entering the final stages of construction and commissioning for its plant, reporting that gas gathering was completed. It also said that temporary power generators and a permanent substation were installed and connected during the final week of August.
Renergen expects commissioning to start in December 202. It is forecasting a turn-on date “before the end of 2023, with full production during 2024”.
Renergen share price snapshot
The Renergen share price is up an impressive 90% over the past 12 months, compared to a gain of 27% posted by the All Ords.
Renergen’s shares hit all-time highs of $2.75 on 12 April. That was likely driven by news that its Cryo-Vacc system could be used to transport temperature sensitive COVID-19 vaccines, keeping them at ultra-cold temperatures for up to 30 days without the need for outside power sources.
The post Why the Renergen (ASX:RLT) share price has charged higher today appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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