The Energy World Corporation Ltd (ASX: EWC) share price zoomed over 11% higher today to close at 10 cents. That puts the Energy World share price up more than 45% over the past year, and up 40% over the past month.
Energy World is an independent energy company, primarily engaged in the production and sale of power, and development of LNG projects. The company runs operations in the Philippines, Indonesia, and Australia.
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Energy World share price soars as project recommences
The company announced today that, after a 4-year ordeal, it can recommence work on its mid-scale modular LNG facility in Indonesia, the PT. South Sulawesi Project (PTSSLNG).
The Planology Department of the Ministry of Forestry completed a formal review of the historical land documentation that maps where the project is located. In 2017, this land was incorrectly categorised as forestry land.
In today's announcement, Energy World confirmed that the site has been re-confirmed as industrial land. The company also advised that it is now being encouraged to recommence project construction, along with associated commercial discussions.
To date, US$343 million has been invested in the PTSSLNG project (excluding finance and soft costs). A further US$35–50 million is necessary to bring the first 500,000 tonnes per annum (tpa) of LNG into production. The company stated that it's confident it can use project debt to obtain additional funding.
Energy World expects the project to rapidly expand to a 2 million tpa production rate using future funds generated from LNG sales.
According to the release, its first LNG sales will occur over the next 18–24 month period.
How has Energy World performed recently?
According to the company's quarterly report for the period ended 31 December 2020, it continues working within a coronavirus-impacted environment.
As of 31 December 2020, Energy World reported year-to-date receipts from customers totalling approximately $71.9 million. The company reported a cash bank balance of roughly $5.5 million for the quarter.
The company's half-year earnings announcement will be released at the end of this month.
Despite being up a whopping 40% in the past month, the Energy World share price has lost 50% of its value over the past five years.
