The Energy Technologies (ASX:EGY) share price has charged 9% higher. Here's why.

The Energy Technologies (ASX: EGY) share price soared today on the back of winning a government grant. We take a closer look.

| More on:
A happy businessman pointing up, inidicating a rise in share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Energy Technologies Limited (ASX: EGY) share price charged higher today on news the company has won a sovereign grant.

Shares in the cable manufacturer were up 9.2% at 8.3 cents in closing trade, after hitting a 20.83% high of 14.5 cents this morning.

What Energy Technologies does

Based in New South Wales, Energy Technologies manufactures and sells specialist industrial cables. The company focuses on the Australian market through its 100% ownership in Bambach Wires and Cables Pty Limited and Cogenic.

In addition, Energy Technologies is also actively seeking potential acquisitions for the group through other products, businesses and opportunities. The $25 million market cap company was founded in 1983 and listed 10 years later on the ASX.

What happened today?

The company advised that Bambach has won a $1.34 million government grant.

The sovereign industrial capability priority grant aims to improve Australia's manufacturing capability. It specifically supports the Continuous Shipbuilding Program, which includes submarine acquisitions, land combat, protecting vehicles and technology upgrades.

The grant will enable the company to boost its existing capability in manufacturing small, medium, and large diameter, low-voltage silicone copper cables. These are essential for use in submarines and shipbuilding. Total cost for the project is estimated $1.74 million, of which the government is contributing $1.34 million.

Furthermore, Energy Technologies will not have to spend on additional infrastructure as the current Bambach facility in Rosedale is large enough to house the new equipment. As such, construction will start immediately.

Management comments

Energy Technologies CEO Alf Chown welcomed the news, stating:

It is an exciting time for Bambach, with a great deal of the commissioning of Rosedale now complete and the move into larger Government contract work through the timely installation of the Silicon manufacturing equipment, the company is looking at a bright future.

We would also like to thank the Federal Government for the professional manner in which they have worked with us and the support they have shown to Australian manufacturing.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young woman slumped in her chair while looking at her laptop.
Share Market News

Here are the top 10 ASX 200 shares today

It was a lacklustre day of trading for ASX investors this Thursday.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Share Market News

Buy these top ASX 300 dividend stocks today for an income boost

Analysts are feeling bullish about these income options.

Read more »

a small child holds his chin with his head on the side in a serious thinking pose against a background of graphic question marks and a yellow lightbulb.
Share Market News

Costs and lack of skilled labour delay innovation among Australian businesses

Less than half of Australian companies implemented some type of innovation in FY22 and FY23.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why James Hardie, Mader Group, MMA Offshore, and WA1 shares are dropping today

These shares are having a tough time on Thursday. But why?

Read more »

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today
Share Gainers

Why Bigtincan, DroneShield, Guzman Y Gomez, and Helia shares are racing higher

These shares are having strong sessions on Thursday. But why?

Read more »

Happy man at an ATM.
52-Week Highs

2 ASX 200 bank shares smashing new multi-year highs today

Here we go again...

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
IPOs

Who owns Guzman y Gomez shares?

Holy Guacamole! These investors have a lot of money in Guzman y Gomez shares.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Beaten-up ASX 200 stock rebounds 15%. Macquarie says more to come

The sell-off could be unfounded, one broker says.

Read more »