Vulcan (ASX:VUL) investors don't bite after earnings, shares down 13% YTD

Vulcan Energy can't catch a bite today either.

| More on:
A disappointed female investor sits in front of her laptop and puts her hand to her forehead and closes her eyes in disappointment over share price falls

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

Key points

  • Investors aren't biting into Vulcan shares today despite the company posting its half year results late last week 
  • The company printed its first revenue from operations and also bolstered its balance sheet during the half 
  • The Vulcan Energy share price has soared more than 54% in the past 12 months 

Shares in Vulcan Energy Resources Ltd (ASX: VUL) are trading in the red on Monday despite no market-sensitive information today.

However, investors don't appear impressed after the company released its interim report and financial results for the half-year ended 31 December 2021 last week.

Vulcan shares are currently swapping hands at $9.09 apiece, around 4% down on the day.

Vulcan share price slides since earnings release

Key takeaways from the company's earnings results include:

  • Cash and cash equivalents of 134,5 million Euros, up from 70.5 million euros the prior half
  • Net assets of 206.4 million euros, a substantial gain from a base of 81.5 million euros 6 months prior
  • Revenue from continuing operations came in at 689,999 euros, the first recording
  • Net loss after tax (NLAT) of 6.2 million euros, more than 3.6 million euros of June 2021
  • Loss per share of 6.52 euros

What else happened this half for Vulcan?

During the half, Vulcan successfully raised $200 million via a placement from existing and new institutional investors. The company notes many of these investors included ESG-focused institutions.

Vulcan also says its chemical engineering team "successfully produced its first battery quality lithium hydroxide monohydrate (LHM) from piloting operations".

"The plant sample exceeded traditional battery grade LHM product including best on the market battery grade specifications required from offtake customers, at >56.5% LiOH.H2O and with very low impurities", the company said.

It also noted that it now boasts offtake agreements that are "fully booked for the first 5 years of operation" with names such as Umicore, Stellantis and Volkswagen Group to name a few.

The company also recorded NLAT of more than 6 million euros, whilst printing its first revenue from operations at a total of 690,000 euros for the period.

As a result of the successful capital raising and valuation of its asset base, the company now has a net asset value of 206 million euros.

Management commentary

Speaking on the company's renewables and geothermal business, Vulcan directorship said:

A significant highlight of the reporting period was the acquisition of the operational geothermal renewable energy power plant in the Upper Rhine Valley at Insheim, Germany (the "Insheim Plant"). The acquisition established Vulcan as a renewable energy producer and is a source of revenue for the Company. The plant currently has the technical ability to produce a maximum of 4.8MW renewable power, equivalent to approximately 8,000 households, with an additional ability to produce heating. The plant is producing 2.9 MW of electricity on average and capitalises on the feed-in tariff for geothermal power.

What's next for Vulcan?

At the company's Upper Rhine Valley Project, its team of geological engineering experts continue to increase their understanding of the sub-surface areas, Vulcan says, and that 3D seismic survey-work will be carried out in advance of drilling. Phase 2 drilling for the site is targeted for 2023, it also noted.

Vulcan Energy share price snapshot

The Vulcan Energy share price has soared more than 54% in the past 12 months but is down 13% this year to date.

In the past week, it has lost 4%, however, it is still leading the benchmark index's return as shown below.

TradingView Chart

More on Earnings Results

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Earnings Results

ASX 200 stock jumps 10% on strong FY24 results

How did this KFC restaurant operator perform in FY 2024?

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock just slashed its final dividend by 23%

This retailer had a tough time during the 12 months. Here's how it performed.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Earnings Results

Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

A strong annual result from this tech player has caught investor attention.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Earnings Results

Xero share price leaps 8% on staggering earnings upheaval

A major turnaround in profitability is sending investors into a frenzy over Xero shares today.

Read more »

a construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer while wearing a hard hat and visibility vest in a bunker style construction shed.
Materials Shares

Which ASX 200 stock just plunged 12% despite record full-year earnings?

It looks like an impressive report card but UBS doesn't like the FY25 guidance.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

ASX 200 tech stock lifts off on another record-setting half-year profit

Investors are bidding up the ASX 200 tech company following its half-year results.

Read more »

increasing rural asx share price represented by happy looking sheep
Earnings Results

Why is this ASX All Ords stock staying strong as profits crash 76%

How is this company's share price marching higher after mowing down more than three-quarters of its profits compared to a…

Read more »

Two men sit side by side on a couch with video game controls in their hands and expressive looks on their faces as they react to the action in front of them in a home setting.
Earnings Results

Guess which ASX 200 stock is surging 11% on an 'outstanding' result

This ASX gaming giant just posted a 17% jump in profits, and its shareholders are basking in the glory.

Read more »