Genex Power Limited - Quarterly Activities Report and Delisting Announcement
GNX (GNX) Share Update July 2024 Tuesday 30th
Genex Power Reports Strong Quarterly Performance and Announces Delisting
Genex Power Limited (ASX: GNX) has released its quarterly activities report for the quarter ending 30 June 2024, highlighting robust performance across its projects and announcing its upcoming delisting from the Australian Securities Exchange (ASX).
Instant Summary:
- 51,987MWh generated from KS1, JSP, and BBP projects.
- Revenue of $7.2M from KS1, JSP, and BBP.
- Refinancing of senior and subordinated debt facilities with a new 5-year $162M senior facility.
- Draw down of $10M funding extension from J-POWER.
- Cash at bank of $83.8M as of 30 June 2024.
- Corporate transaction with JPGA Partners Pty Ltd (J-POWER Nominee) to acquire 100% of Genex shares.
- Genex to delist from ASX on 1 August 2024.
Quarterly Performance
Genex Power Limited reported a strong performance for Q4 FY2024, generating 51,987MWh from its 50MW Kidston Solar Project (KS1), 50MW Jemalong Solar Project (JSP), and 50MW/100MWh Bouldercombe Battery Project (BBP). This resulted in a revenue of $7.2M, reflecting the strong performance of the BBP and a continued recovery in wholesale power prices.
The company successfully refinanced its senior and subordinated debt facilities for KS1 and JSP with a new 5-year $162M senior facility. Additionally, Genex drew down $10M from Electric Power Development Co., Ltd. (J-POWER), bringing the total facility outstanding to $45M. As of 30 June 2024, Genex had cash at bank amounting to $83.8M.
Operational Updates
Significant progress was made on the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro), including the commencement of final excavation works, completion of shotcrete works, and continued concrete works in preparation for turbine installation. Transmission works also progressed with tower assembly and stringing operations for conductors.
KS1 generated 23,148MWh of renewable energy, earning $1.5M in revenue, while JSP generated 19,330MWh, contributing $2.3M in combined electricity and LGC sales. The BBP dispatched 9,509MWh, resulting in a net revenue of $3.4M.
Corporate Developments
Post period-end, Genex announced a corporate transaction with JPGA Partners Pty Ltd (J-POWER Nominee) to acquire all ordinary shares not owned by J-POWER. The scheme of arrangement was approved by shareholders and the Supreme Court of New South Wales, making it effective. Consequently, Genex shares are currently suspended, and the company is expected to delist from the ASX on 1 August 2024.
During the quarter, Genex reported no environmental incidents or injuries. The company also noted payments to Directors and related parties as part of their quarterly expenditure.
The announcement of strong quarterly performance and the successful refinancing of debt facilities is likely to have a positive impact on investor sentiment. However, the delisting from the ASX might cause some uncertainty among investors, potentially leading to short-term volatility in the stock price. The long-term impact will depend on how well Genex manages its transition and continues to deliver on its project milestones.
Investor Reaction:
Analysts are likely to view the strong quarterly performance positively, especially the significant revenue generation and successful refinancing. However, the delisting announcement may raise concerns about liquidity and transparency, leading to mixed reactions among investors.
Conclusion:
Investors should closely monitor Genex's final delisting process and assess the company's ongoing performance and strategic direction. Staying informed about Genex's project developments and financial health will be crucial for making informed investment decisions.