Renergen, the JSE-listed owner and operator of the Virginia gas plant in the Free State, is focusing on a listing on Nasdaq in the US, alongside the planning and funding of the Phase 2 expansion of the plant. operations.
This was announced by chairman Dumisa Hlatshwayo during the release of the annual results on MOnday. The share price fell by 5.7 to R6.96 on the JSE on Monday afternoon, significantly down from R10.90 a year ago, and representing a free-fall from R35.11 three years ago.
Renergen had initially attracted considerable interest among retail investors on the JSE; however, the share price has declined significantly due to numerous delays in the ramp-up to production of South Africa’s first onshore gas production platform.
The results showed that revenue increased by 79.7% to R52.1 million, up from R29m in the prior corresponding period. This growth follows a year during which the group enhanced its liquid natural gas production LNG) and brought its helium plant into production for the first time.
The headline loss per share (HLPS) increased to 159.15 cents, up from 75.07 cents per share in the prior corresponding period. The dividend was passed.
Hlatshwayo stated that other focus areas for Renergen’s management in the new financial year will include overseeing the completion of Phase 1 of the gas facility and managing the risks faced by the group, as well as assessing the adequacy of risk mitigation measures in place.
Management will also need to ensure that disaster recovery plans for the plant’s automation systems are adequate. IT improvements will be focus, which include obtaining a third-party review of the company’s IT environment.
CEO Stefano Marani said in the results that interventions introduced to address multiple maintenance shutdowns in September 2023 and February 2024 had led to improved performance in 2025. LNG production had averaged 407 tons per month, compared to 232 tons previously. The current focus was to increase LNG production to the nameplate capacity envisaged for Phase 1.
Regarding helium production, Marani noted that the first delivery took place in March this year, with the aim now to lift gas flows to nameplate capacity.
On the reported loss, the group attributed this to additional expenses incurred in bringing the helium train into production, which generated no associated revenue in the meantime, increased depreciation from additional assets being recognised, and the recognition of increased operating expenses that were previously classified as capital expenses.
“As we continue to ramp up production to achieve nameplate capacity, we expect our financial performance to improve significantly,” said Marani.
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