Helium and natural gas producer Renergen reported a widening of its loss at the halfway stage, as higher costs, one-off transaction expenses and increased depreciation outweighed a modest rise in revenue.
In a statement on Friday, the company said revenue for the six months to end-August rose 13.7% to R29.1m supported by higher output and sales from its Virginia gas project in the Free State.
Despite the revenue growth, Renergen’s total comprehensive loss nearly doubled to R134.8m from R67.6m in the previous period. Its headline loss per share widened from 45.7c to 91.1c.
The company attributed the deeper loss to several factors, including one-off transaction costs linked to its planned ASP Isotopes combination and the full commissioning of its phase 1 plant, which increased depreciation charges.
Renergen, headed by CEO Stefano Marani, is developing the Virginia gas project, SA’s only onshore producer of liquefied natural gas and helium. The company is planning a second-phase expansion to increase output and improve project economics.
Investors, however, shrugged off the widening loss as they remained optimistic about the group’s Virginia Gas Project and the proposed acquisition by ASP Isotopes.
The company’s share price closed up 18.87% to R16.38 on the JSE on Friday, taking its year-to-date gains to almost 135%.
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