Renergen

JP: RENJ

ZAR820.1m market cap

ZAR8.19 last close

Renergen is an integrated alternative and renewable energy business that invests in early-stage alternative energy projects across Africa and emerging markets.

Investment summary

2018 activity was slower than planned for Renergen as its expected funding of the Virginia LNG/helium project in South Africa was delayed due to a long period of economic and political volatility. However, with a recently completed rights issue that unlocks a pre-agreed debt facility, Renergen can now start to order key equipment. The macro environment is more favourable, with helium prices potentially higher after the cessation of public auctions of the US strategic helium reserve. Longer term, Renergen is looking to the Australian markets for additional share liquidity, with an Australian Stock Exchange (ASX) dual listing planned for 2019.

Y/E Feb
Revenue (ZARm)
EBITDA (ZARm)
PBT (ZARm)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 2.9 (22.0) (21.7) (0.2) N/A N/A
2018A 3.5 (26.9) (27.1) (0.3) N/A N/A
2019E 3.5 (35.5) (37.1) (0.4) N/A N/A
2020E 26.8 (37.0) (23.5) (0.2) N/A N/A
Last updated on 20/03/2019
Industry outlook

Renergen is targeting the heavy duty LNG truck market which is a rapidly evolving market globally. Meanwhile helium prices are likely to remain buoyant following the shutdown of the US strategic reserve in 2018.

Last updated on 20/03/2019
Sector
Oil & gas
Share price graph
Balance sheet
Forecast net cash (ZARm) 4.8
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.4 (0.7) (12.2)
Relative* (0.6) (10.0) (10.3)
52-week high/low ZAR9.8/ZAR7.2
*% relative to local index
Key management
Stefano Marani CEO
Fulu Ravele CFO
Nick Mitchell COO