Genex (ASX:GNX) share price flat on battery project update

The Genex share price is flat today after the company announced it had signed an agreement to complete a battery project in Queensland.

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The Genex Power Ltd (ASX: GNX) share price has remained flat today despite the company announcing it has signed an agreement for a battery project in North Queensland. At the time of writing, the Genex share price is trading at 20 cents after closing yesterday's session at the same price. 

A sad and flat battery

Image source: Getty Images

What was in the announcement?

According to the announcement, Genex secured an agreement with Powerlink Queensland to access land adjacent to its 275kV/132kV substation in Bouldercombe near Rockhampton in North Queensland. Genex will use the land to develop the Bouldercombe battery project. 

The project will be initially sized at 50/75MWh and Genex expects that it will be the first standalone, large-scale battery project in the state of Queensland.

Genex announced that it had already selected its preferred battery supplier and integrator for the project.

According to Genex, the Bouldercombe battery project will further diversify its portfolio and will position Genex as a leader in renewable energy generation and storage in the Australian market.

About the Genex share price

Genex is a renewable energy company with a focus on clean energy generation and electricity storage. Genex has a development pipeline of up to 820MW of renewable energy generation and electricity storage in its portfolio. It has been listed on the ASX since 2015.

In September, Genex completed a share purchase plan at an issue price of 22 cents raising $2.5 million, this followed a placement to sophisticated and institutional investors which raised $21.28 million at the same issue price.

In the year to 30 June 2020, Genex had revenue of $12.3 million, a decrease of 23% compared to the prior year. The company saw reduced power generation from its Kidston solar plant in FY2020 relative to the prior year, which affected revenue. Genex had cash of $65.5 million at 30 June 2020. The company had earnings per share of -2.63 cents in the year to 30 June 2020.

The Genex share price is up 138% since its 52-week low of 8.4 cents, however, it has fallen 13.04% since the beginning of the year. The Genex share price is down 23.08% since this time last year. 

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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