Corre Energy, a renewable energy storage developer listed in Dublin, is considering seeking funds from shareholders to meet its immediate financial needs while ongoing discussions with third parties keen on making a strategic investment in the company continue. The company, with Irish management but based in the Netherlands, published its annual results for 2023 revealing a decrease in cash from €3.43 million the previous year to €1.08 million last year. The firm also managed to rake in €18.9 million in 2023, through a combination of equity and loans.
The company plans to engage with shareholders in the upcoming weeks regarding the possibility of acquiring additional working capital in anticipation of finalising the strategic investment process and long-term funding. The directors are optimistic about securing short-term funding from the shareholders.
Launched on Euronext Dublin nearly three years ago, Corre Energy announced last month that it had hired the services of investment bank, Rothschild & Co, to guide it on investment propositions it had received from different parties which could provide extra funding for project investment and working capital.
Over the past year, the company’s shares have plummeted over 80 per cent, due, in part, to the energy sector’s overall downturn amidst dropping energy prices coupled with high-interest rates affecting this capital-intensive industry. Observers also attribute this to the company’s failure to clearly articulate the financial specifics of their projects, making it challenging for investors to evaluate their profit potential.
Corre Energy’s flagship project, Zuidwending (ZW1), is located in the Netherlands’ Groningen province and will be capable of providing up to 320MW electricity for as long as three and a half days, scheduled for operation by end of 2026. Among other pivotal projects are a 320MW Green Hydrogen Hub in Denmark, another facility in the Netherlands (ZW2), and a proposal to build three compressed air energy storage plants in Germany. The company also recently ventured into the US market, striking a deal in Texas in July last year, granting it an option to purchase a 280MW compressed air energy storage project.
Keith McGrane, CEO, affirmed the company has fulfilled its commercial targets and development plans, with market needs for its projects demonstrating consistent growth. He also confirmed their financial position in 2023 is at an expected stage relative to their business development cycle, as they persist in realising growth and commercial ambition. The company successfully secured further co-investment for different projects and has launched a drive to guarantee significant additional backing for its trade.
Corre’s shares took a hit in late February when they dropped below their €1 initial public offering (IPO) price for the first time. This was triggered when Darren Patrick Green, a dominent stakeholder and founding director, stepped away from his executive director role, following the identification of a suspected tax-avoidance scheme associated with a Singaporean company ultimately owned by him, by UK tax regulators.
Despite not having any recent connection to the administration of the linked company, Green expressed his surprise at the news, and asserted his dedication to the 38% share he holds in Corre. This situation, nonetheless, is seen as a burden by the market.
From facing a loss of €30.1 million in 2022, Corre managed to turn profits around to €5.64 million last year. This change mostly stemmed from the revaluation of share options granted to the capital benefactor, Fondo Italiano per L’Efficienza Energetica, an Italian private equity fund.