Provaris Energy (ASX: PV1)

Currency in AUD

Last close As at 03/02/2023

AUD0.07

0.02 (40.00%)

Market capitalisation

AUD36m

Australian company Provaris Energy is becoming a vertically integrated green hydrogen producer and supplier, combining production and compressed hydrogen shipping solutions.

Provaris is also developing its 2.8 gigawatt ‘Tiwi H2’ project in northern Australia, the company’s base for its green hydrogen production. In 2022, Provaris took a major step forward when it signed a memorandum of understanding (MoU) with major French power supplier, Total Eren. It subsequently signed a separate MOU with Norwegian Hydrogen in January 2023 that could lead to the transportation of compressed GH2 volumes from Norway, to developing import hubs on the continent and potentially, to the UK. Our scenario models suggest IRRs of between 10% and 19%.

Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Andy Pickering

    Chairman

  • Martin Carolan

    CEO

Balance Sheet

Forecast net cash (A$m)

7.7

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 43.5 11.9 (34.0)
Relative 34.4 4.0 (37.4)
52 week high/low A$0.1/A$0.0

Financials

Central to Provaris Energy’s plans is the development of a new class of ocean-going compressed H2 delivery vessel, the H2Neo carrier. The class ‘Design Approval’ for the vessel was issued by the American Bureau of Shipping in December 2022. The approval opens the way for Provaris to seek a shipyard to quote for and construct the carrier. The novel vessel design gives Provaris first-mover advantage in large-scale hydrogen transport solutions and paves the way for the more cost-effective H2Max vessel, which has five times the capacity.

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2021A 0.2 0.0 (3.1) (0.7) N/A N/A
2022A 0.4 0.0 (6.8) (1.3) N/A N/A
2023E 0.3 0.0 (9.7) (1.7) N/A N/A
2024E 0.3 0.0 (10.2) (1.57) N/A N/A

More from our Industrials team

Curated by Edison

www.afr.com

Provaris Energy featured in the Australian Financial Review

Industrials

'There is also one other Australian company – one that rarely makes the news – plotting a different way to get green hydrogen exports happening. Provaris, known as Global Energy Ventures until last May, steers clear of the mainstream options of ammonia (NH3) and liquefaction (LH2), which often involves keeping the hydrogen at punishingly low temperatures, in favour of shipping it as a compressed gas (CH2).'

Read article

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