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Highlights

  • Frontier Energy is an ASX-listed renewable energy company, developing an integrated hydrogen and solar production facility
  • In FY23, other income of FHE increased by 135% to AUD 292.85k
  • Davey (Grant Lawrence Burnaford) has the highest stake in the firm with a shareholding of 9.29%

Australia-based Frontier Energy Ltd (ASX: FHE) is a renewable energy group. The ASX-listed company is developing an integrated solar and hydrogen production facility. The company is engaged in advancing its Bristol Springs Renewable Energy Project, situated in Western Australia. The company is yet to generate operating income.

In the financial year 2023, the company reported AUD 7.05 million of gains from the deconsolidation of Waroona Energy Inc. Meanwhile, its other income grew by 135.03% to AUD 292.85k, resulting in net profit of nearly AUD 2.07 million.

Top 10 shareholders of FHE

The top 10 shareholders of FHE have around 26.58% shareholding in the company, while the top four have around 20.48% of the shareholding. Davey (Grant Lawrence Burnaford) and Ilwella Pty. Ltd. have the highest stake in the firm with a shareholding of ~9.29% and ~5.18%, respectively.

Recent business update

On 22 May 2024, the company notified that the process to obtain debt funding for the stage one development of the Waroona Renewable Energy project is advancing as per the schedule and credit approved terms anticipated in July 2024. Waroona definitive feasibility study (DFS) expects stage one of the project to generate average EBITDA of AUD 68 million every year over first five years of production.

On 30 April 2024, FHE released its quarterly activities report. During the three months period ended 31 March 2024, the company released its DFS for a 120MWdc solar facility with integrated 80MW 4-hour battery. EPC contracts and procurement to be concluded soon.

WA peak electricity operational demand touched a new record of 4.23GW in February 2024 and surpassed the record peak six times in March quarter.

Outlook

With the acquisition of Waroona Energy Inc, FHE now has the largest renewable energy project in Australia and has approvals for 355MW of solar power generation.

The company’s focus is on developing its present projects into largest renewable energy hubs of Western Australia, with numerous values adding initiatives being considered, including green hydrogen production.

Share performance of FHE  

FHE shares closed flat at AUD 0.390 apiece on 22 May 2024. In the past one year, FHE’s shares have gained 12.36%  and in the last three months, they  have surged by 44.44%.

The 52-week high of FHE is AUD 0.46, recorded on 22 May 2023, and the 52-week low is AUD 0.255, recorded on 23 February 2024.

FHE Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 22 May 2024. The reference data in this report has been partly sourced from REFINITIV.