1H FY 2022 Interim Results Announcement
Sydney, Feb 25, 2022 AEST (ABN Newswire) - Genex Power Limited (
ASX:GNX) is pleased to provide the following update on the Company's financial performance for the first half of the 2022 financial year (1H FY2022 or the Period). In particular, the Company made significant progress during the Period on its first grid-scale battery storage project with the signing of two key agreements with Tesla Motors Australia Pty Ltd (Tesla) for the 50MW/100MWh Bouldercombe Battery Project (BBP), while construction at the flagship 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) continued to progress strongly, helping to position the Company as a leader in the renewable generation and storage markets in Australia.
1H FY2022 FINANCIAL HIGHLIGHTS
Financial and operational highlights for the period included:
- Total generation of 114,508MWh, an 83% increase on the prior period (1H FY2021: 62,447MWh) with a full half of contribution from the 50MW Jemalong Solar Project (JSP);
- Total revenue of $11.96M, a 51% increase on the prior period (1H FY2021: $7.90M), reflecting the increased generation volumes;
- Underlying EBITDA of $5.03M, up 126% on the prior period (1H FY2021: $2.22M) principally driven by the strong revenue from the two solar farms operating at full capacity for the entire Period;
- Net loss after tax of $4.41M, driven by the depreciation of the enlarged portfolio of completed construction assets (1H FY2021: loss of $3.37M);
- Net cash flows from operating activities of ($1.20M) (1H FY2021: $2.67M);
- Net cash and cash equivalents at 31 December 2021 of $36.62M;
- During the Period the Company spent $84.03M in capital expenditure focussed on the development the K2-Hydro project, with activities including turbine model tests, commencement of underground works and completion of site establishment activities;
- Supply Agreement and Autobidder Offtake Agreement signed with Tesla for the BBP, progressing the project towards financial close; and
- Subsequent to period-end, Genex secured a $35M debt facility, completed a $40M placement and launched a $10M share purchase plan to complete the financing for the BBP, and reached contractual close for the project.
OUTLOOK
Genex is in a strong position to deliver on its growth ambitions. Genex's projects are positioned to deliver dispatchable, clean power that will help Australia meets its renewable energy targets. The increasing impact of intermittent generators on energy prices highlights the need for investment in large scale storage options such as K2-Hydro and the BBP. Over the remainder of FY2022, the Company will continue to focus on:
- Continued construction activities at the K2-Hydro project;
- Satisfaction of final conditions precedent for the BBP project to reach financial close, with construction to commence imminently for energisation in mid-CY2023;
- Progression of the Kidston Stage 3 Wind Project, with development approvals and proving up the wind resource key areas of focus for the project; and
- Continued development of the Company's portfolio through enhancement of its project pipeline.
Commenting on the 1H FY2022 performance, Genex CEO, James Harding said:
"Over the past 6 months we have continued to pursue our growth strategy. Our flagship Kidston Pumped Storage Hydro Project is progressing strongly through the construction phase and remains on schedule and budget for commissioning and operations to commence in late CY2024.
When in operation, K2-Hydro will be the first pumped hydro project in to be developed in Australia in 40 years, and the third largest electricity storage facility in the National Electricity Market.
Our Bouldercombe Battery Project has made significant progress over the Period. We signed two key agreements with Tesla, first for the supply of the 50MW/100MWh Megapack 2.0 units, and secondly as the offtake partnerfrom the project. In addition, we executed a connection agreement with Powerlink Queensland to connect the project to the National Electricity Market. Furthermore, subsequent to period-end we secured a $35M debt facility and completed a $40M capital raising to complete the financing package for the project, and executed the balance of project and financing documentation to reach contractual close. We expect the project to reach financial close and commence construction in the coming week.
Pleasingly, our operational assets performed strongly during the Period. We saw consistent operations at both the Kidston Solar Project and Jemalong Solar Project, helping the Company achieve record generation of renewable energy over the Period. Both assets have recently been among the top 5 best performing solar projects in the National Electricity Market and have proven to be a valuable source of cash generation for Genex.
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About Genex Power Ltd
Genex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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