Renergen released a summary of its financial statement for the year ended 29 February 2024 on 8 May 2024.

We note the below highlights and remaining concerns: 

• Even though revenue increased by 128% and gross profit by 151%, the loss for the year increased by 311% from R26.7 million to R109.8 million. 
• A 5.5% stake in Tetra4 (main assets and operations of Renergen) was sold to Mahlako Gas Energy (MGE) for R550 million. 
• The second half of the financial year experienced operational challenges resulting in annual maintenance being carried out in September instead of December with a prolonged duration due to long lead times of components. 

Our research supports a sell recommendation.