Renergen reports worst loss in history

Gas producer Renergen reported dismal results for its 2025 financial year, with the company’s loss deepening by over 100%.

Renergen released its results for the year ended 28 February 2025 on Wednesday, which revealed a poor financial performance.

The company reported a nearly 80% increase in revenue to R52.1 million, which it attributed to higher liquefied natural gas (LNG) production volumes and higher LNG prices during the year. 

Renergen’s LNG sales volumes increased from 2,660 tonnes in 2024 to 4,633 tonnes in 2025. LNG prices averaged R225/gigajoule in 2025 compared to R217/gigajoule in 2024.  

However, this significant jump in revenue was not enough to offset the company’s high costs.

Therefore, the company’s total comprehensive loss attributable to ordinary shareholders increased from R110.2 million in 2024 to R235.8 million in 2025, representing a 114% increase.

The company attributed this to several factors, including the implementation of its operational strategy, which required Renergen to incur costs such as fuel, lubricants, utilities, and labour.

These costs are associated with commissioning the helium production train without generating any associated LHe during the commissioning phase. 

“This contributed to the group generating a gross loss for the year,” the company explained.

It further explained that the balance of plant and the LNG/liquid helium (LHe) process plant were brought into use in July 2024 and August 2024, respectively, which also increased the expenses.

Prior to this, certain expenses, such as salaries and insurance, qualified for capitalisation during the construction phase and were, therefore, not recorded in the income statement. 

Resultantly, these expenses did not impact the reported profit or loss during the construction phase in prior years, but had to be recorded for the 2025 financial year.

Another high-cost item was depreciation charges, as the increase in assets brought into use during the year significantly impacted the charges recognised by the group. 

Renergen revealed that, year-on-year, depreciation increased by R41.8 million.

The company also reported a 16% decline in its tangible net asset value per share, which fell from R8.40 in 2024 to R7.03 in 2025.

This decline was attributed to decreases in cash and cash equivalents and restricted cash, as well as operational losses incurred by the group. 

Operational progress

Despite its poor financial results, Renergen reported significant operational milestones during the 2025 financial year. 

This includes the following strategic objectives related to the ongoing construction of the Virginia Gas Project (VGP) and the progression of LNG and LHe operations –

• Completed the system integration and final commissioning of the LHe production train at the VGP.
• Selling the first LHe from the VGP.
• Took over complete operational control of the Phase 1 plant from the Original Equipment Manufacturer in July 2024.
• Successfully implemented mitigation measures to produce LHe and sell the first Dewar container of LHe after the reporting period.
• LNG production in the 2025 financial year totalled 4,885 tonnes, up from 2,876 tonnes the year prior
• Two exploration wells with high helium concentrations have been completed and converted to production-ready status.

However, Renergen also reported some operational challenges it faced over the year.

“Operationally, we faced delays in obtaining ISO containers for our LHe operations, experienced system shutdowns relating to the final commissioning of the helium system and recorded minor efficiency losses with respect to our LNG operations,” the company said.

“Despite these setbacks, LNG production was stable over the course of the year, and in March 2025, the group filled and sold its first LHe delivery for a customer.” 

The company said it continues to optimise its operations to ensure the long-term expansion, stability, and efficiency of its LNG and LHe operations.

Renergen’s share price was down around 1.39% at the time of this article’s publication on the day these results were released.