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

Photo of two women shopping.
Earnings Results

Premier Investments share price jumps 9% on results and demerger plans

The Smiggle and Peter Alexander owner has released its results. How did it perform?

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

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

Brickworks share price tumbles on disappointing half-year loss

This loss didn't stop the company from increasing its dividend again.

Read more »

A man sits on a bench atop a mountain with a laptop, making investments with a green ESG mind.
Earnings Results

ASX All Ords stock KMD tumbles as interim dividend cancelled

Investors are hitting the sell button on ASX All Ords stock KMD today.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

New Hope share price charges higher despite profit crunch and huge dividend cut

Weaker coal prices have hit this miner's profits and dividend hard.

Read more »

A Chinese investor sits in front of his laptop looking pensive and concerned about pandemic lockdowns which may impact ASX 200 iron ore share prices
Earnings Results

Liontown share price tumbles 7% on half-year results

This lithium developer's results have been released this afternoon.

Read more »

A man in a hard hat and high visibility vest holds his thumb up in a gesture of confidence with heavy moving equipment in the background as on a mine site as the Chalice Mining share price rises today.
Earnings Results

Sayona Mining share price jumps despite $32m half-year loss

The Sayona Mining Ltd (ASX: SYA) share price is pushing higher on Thursday. At the time of writing, the lithium…

Read more »