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 group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.
Opinions

Why I'm calling this ASX reporting season 'buying season'

Reporting season might come in like a wrecking ball... and that's fine by me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 20% to 40%

Big returns could be on offer from these stocks according to analysts.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Share Market News

Good ASX news! Australia's 'one of the cleanest markets in the world'

Investors can sleep well at night knowing our market system has integrity.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Market News

5 Australian shares to buy and hold forever

Analysts think these buy-rated shares would be great options for investors.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Market News

Could Fortescue shares fall a further 14% from here?

Bell Potter is tipping the mining giant's shares to continue sinking.

Read more »

Happy work colleagues give each other a fist pump.
Share Market News

Here are the top 10 ASX 200 shares today

The ASX actually finished its week on a high note today.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Broker Notes

Buy one, sell the other: Goldman's take on these 2 ASX retail shares

Despite high interest rates and inflation, ASX retail shares have been on a strong run.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Bellevue Gold, Chrysos, Meteoric Resources, and Newmont shares are falling today

These shares are having a tough finish to the week. But why?

Read more »