Energy World Reports $3.62M Operating Cash Outflow, Seeks Funding for LNG Projects

• Appointment of global investment bank as funding advisor for LNG and power projects
• Net cash used in operating activities of $3.62 million USD for the quarter
• Net cash used in investing activities of $12.11 million USD, mainly on project expenditures
• Senior executive Graham Elliott resigns but remains as non-executive director
• Ongoing loan restructuring discussions with EWI/Slipform and Swan Capital

Strategic Funding Move

Energy World Corporation Ltd (ASX: EWC) has taken a significant step towards securing its future growth by appointing a major global investment bank as its advisor and coordinator for a potential funding transaction. This move, announced in the quarterly report for the period ending 31 March 2025, aims to raise capital to support the company’s LNG, Hub, and Power Plant projects in the Philippines. The appointment, effective from April 11, 2025, signals Energy World's intent to accelerate development and attract substantial investment into its key infrastructure initiatives.

The bank is currently conducting technical and commercial due diligence, with initial reports expected within weeks. These assessments will form the basis of an information memorandum to be released to potential investors and lenders, providing independent validation of the projects’ viability and financial prospects.

Financial Performance and Cash Flow

The company reported a net cash outflow from operating activities of $3.62 million USD during the quarter, reflecting ongoing expenditures related to research, development, administration, and corporate costs. Investing activities also consumed $12.11 million USD, primarily directed towards project-related capital expenditures and site payments across the Philippines, Indonesia, Australia, and Hong Kong.

Despite these outflows, Energy World ended the quarter with $22.46 million USD in cash and cash equivalents. The company’s loan facilities remain substantial at $430.59 million USD, fully drawn with no unused financing available, underscoring the importance of the upcoming funding transaction to maintain liquidity and support operations.

Executive Changes and Governance

In a notable leadership update, Energy World accepted the resignation of Senior Executive Graham Elliott following the quarter’s end. Elliott will continue to contribute as a Non-Executive Director, maintaining his involvement in strategic matters and ongoing relationships with key partners such as EWI/Slipform and Swan Capital. The company expressed gratitude for Elliott’s years of service and anticipates his continued valuable input in his new capacity.

Loan Restructuring Efforts

Energy World is actively engaged in discussions with EWI/Slipform and Swan Capital to restructure payment terms on existing loan agreements. While no formal variation has been agreed upon yet, the company made a payment to EWI/Slipform in March and is working towards a mutually acceptable arrangement. Swan Capital has indicated willingness to consider restructuring options, with updates expected as negotiations progress.

Looking Ahead

The quarter’s activities reflect Energy World’s dual focus on securing necessary funding and managing its financial obligations while advancing critical energy infrastructure projects. The outcomes of the investment bank’s due diligence and the loan restructuring talks will be pivotal in shaping the company’s operational and financial trajectory in the coming months.

Bottom Line?

Energy World’s next funding milestone and loan restructuring outcomes will be key to sustaining its ambitious project pipeline.

Questions in the middle?

• What are the specific terms and timeline for the proposed funding transaction?
• How will the senior executive’s resignation impact project execution and corporate strategy?
• What are the risks if loan restructuring negotiations with Swan Capital and EWI/Slipform stall?