Energy World Corporation has eliminated all group-level borrowings, strengthening its balance sheet and advancing key LNG and power projects in Southeast Asia amid ongoing operational losses.
- Complete elimination of $434 million group-level debt via share issuance
- Net tangible assets per share nearly doubled to 18.83 cents
- Progress on Philippines LNG hub and 650MW power plant with positive technical reviews
- Ongoing funding discussions led by a US investment bank for project completion
- Net loss of $14.56 million reflects divestment and operational costs
Financial Reset and Strategic Refocus
Energy World Corporation Limited (ASX: EWC) has marked a pivotal half-year period ending December 2025 by wiping out all group-level borrowings through a $434 million debt conversion agreement. This decisive move has significantly strengthened the company’s balance sheet, with net tangible assets per ordinary share rising from 10.43 cents to 18.83 cents. The restructuring also increased Energy World International Ltd’s ownership stake to 53.68%, reinforcing shareholder alignment.
While the company reported a net loss of $14.56 million for the half-year; largely due to the divestment of upstream Indonesian operations and ongoing operating expenses; the elimination of debt sets a foundation for renewed focus on core LNG and power infrastructure projects.
Advancing LNG and Power Projects in Southeast Asia
Energy World’s flagship project in the Philippines, the Pagbilao LNG import and storage hub coupled with a 650MW combined-cycle gas-fired power plant, has seen encouraging progress. Independent technical assessments confirmed the integrity of installed assets, including gas turbines which passed borescope inspections without major defects. The LNG hub is designed to support not only the adjacent power station but also third-party LNG storage and trading, positioning it strategically within the growing Philippine LNG-to-power market.
In Indonesia, the company retains ownership of the Sengkang LNG Production Plant after divesting upstream interests. This facility, capable of producing up to 2 million tonnes of LNG annually, has completed key infrastructure installations. Technical due diligence affirms the project’s viability, though securing feed gas supply and financing remains critical.
Funding and Future Outlook
With the capital structure reset, Energy World is actively pursuing project-level funding to resume and complete construction. A US-based investment bank is advising on a funding package combining subsidiary equity and project finance debt. Concurrently, the company continues to divest non-core Australian assets to concentrate resources on its Southeast Asian LNG and power ventures.
Chairman Alan Jowell acknowledged the ongoing challenges, including operating losses and a material uncertainty regarding the company’s ability to continue as a going concern. Nevertheless, he expressed confidence in the intrinsic value and strategic relevance of Energy World’s core assets, particularly given the rising global demand for reliable power driven by expanding digital infrastructure and artificial intelligence technologies.
Looking ahead, 2026 is set to be a year of disciplined execution, with the company focused on securing funding, advancing construction, and strengthening governance to unlock long-term value.
Bottom Line?
Energy World’s debt-free status clears the path for critical project funding, but execution risks remain as it seeks to capitalise on growing LNG and power demand.
Questions in the middle?
- Will Energy World secure the necessary project-level funding to complete Pagbilao and Sengkang facilities?
- How will ongoing operating losses and going concern risks impact investor confidence and share price?
- What are the timelines and commercial terms expected for LNG offtake agreements in Indonesia?