Energy company Renergen has reported a deeper loss for six months to end-August though revenue increased as a result of higher liquefied natural gas (LNG) prices.
The company, which produces liquefied helium and LNG, said revenue from ordinary activities increased by 7.6% compared to the previous comparable period, reaching R25.6m.
However, the total comprehensive loss widened 55.2% to R67.5m, while the headline loss per share and loss per share was 45.73c compared to a loss of 29.87c and 29.91c, respectively, a year earlier.
In a trading update earlier this month, Renergen said the substantial increase in the loss per share was primarily due to reduced production time for helium and LNG after annual maintenance at its Virginia plant. This period, leading up to the end of the financial period, affected revenue generation, it said.
The company’s share price fell after the news and was trading 4.2% weaker at R8.90 at 4.30pm.
Renergen holds onshore exploration and production rights for 187,000ha of gas and helium fields across Welkom, Virginia and Theunissen in the Free State.
The group said on August 12 that its helium production train was fully operational, allowing for the commercial sale of the gas.
With the helium project successfully under way, the group has established SA as one of the eight countries worldwide capable of producing liquid helium.
While the commissioning delays affected short-term performance, the company said it remained focused on executing its strategic objectives.
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