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Utility sector stocks are gaining investors’ attention because of the ongoing progress towards achieving net zero-emission.The sector has been in the spotlight after the G20 summit.The utility index delivered a negative YTD and positive QTD return.
Energy World Corporation Ltd (ASX:EWC)
Energy World Corporation is into the production and sale of power, oil and natural gas. It develops independent power projects. Besides, it also manufactures and sells liquefied natural gas and is involved in developing energy linked projects.
In FY2021, EWC delivered a YTD return of 30.43%. During the period, the Company experienced the impact of COVOD-19 on its business. As a result, there was a 6.2% dip in the revenue to US$149.4 million. Net profit declined significantly from US$12.3 million to US$1.8 million, representing various one-off developments that happened during the period.
Despite the challenges posed by COVID-19, the Company could operate and manage its current investments and make further development in its Power, Gas as well as LNG Projects under development in Indonesia and Philippines, and the process to resume gas production in Australia.
Also, it implemented all required and advised recommendations of national as well as local regional level governments where the Company was operational related to COVID-19.
Besides, EWC raised US$50 million under the Entitlement Offer, which was used to make payment to Augusta Investments I Pte. Ltd and pay linked costs and other corporate and project development purposes. In October 2021, the Company completed its final loan repayment from Augusta Investments. On 22 October 2021, its subsidiary in Indonesia, PT Energi Sengkang, made its final loan repayment to the Development Financial Institutions under the PT Energi Sengkang loan facility.
The stock closed at AU$0.090 per share today.
