Energy company Renergen expects to report a wider interim loss as it absorbed one-off costs and higher operating expenses following the full commissioning of its flagship phase 1 plant.
In a trading statement on Tuesday, the company said it expected its headline loss per share to be between 86.6c and 95.7c for the six months to end-August, compared with a loss of 45.73c a year ago.
The company’s previous trading statement, issued in September, had already flagged at least a 20% increase in losses, but the updated figures indicate a steeper deterioration than initially projected.
Renergen attributed the larger interim loss primarily to one-off transaction costs linked to the company’s merger with ASP Isotopes, higher depreciation charges following the full commissioning of its phase 1 helium and natural gas plant, and the reclassification of certain costs that were capitalised in the previous period but are now expensed as operations commence.
The group also reported a rise in interest expenses, citing increased borrowing to support the expansion of its operations and associated infrastructure.
The company said the changes stemmed from the company’s transition from a construction phase into a full operating phase.
“During the current reporting period, the plant was fully commissioned,” Renergen said.
“This milestone now requires the full depreciation of assets and the recognition of associated operating costs through the income statement.”
The phase 1 project’s commissioning moves Renergen into a production phase, potentially positioning the company to ramp up helium and LNG production in the coming months.
The ASP Isotopes transaction, meanwhile, is expected to give Renergen exposure to the advanced materials and isotopes sector as part of a broader strategy supporting its existing energy and helium businesses.
The company will release its results on October 31.
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