WTI (Mar) $81.01 +86c, Brent (Mar) $87.47 +$1.35, Diff -$6.46 +49c, USNG (Feb) $2.94 -12c, UKNG (Feb) 136.44p -7.56p, TTF (Feb) €52.7 -€5.79

Oil price

Oil was better yesterday as US economic data beat the whisper at GDP, jobless claims and durable goods numbers. But it did strengthen the greenback after a period of weakness. With Opec next week unlikely to change much and with China seemingly sorting out Covid after the Lunar New Year oil has gone back into backwardation.

Coro Energy

Coro has announced that, in anticipation of and in preparation for achieving Ready to Build status in the Company’s two 100MW Philippines renewables projects, the Company has restructured its arrangements with its partners in country, increasing its dividend entitlement.

The Company has two development stage renewables projects in the Philippines, a 100MW solar project and a 100MW wind project which, allowing for permitting timelines, are 6 and 15 months respectively, away from achieving ready-to-build status. As announced on 16 January 2023, the Company is currently preparing its re-submission of a Wind Service Energy Contract which it expects to complete shortly.

The Company currently has an entitlement to 80% of the future dividends from the Philippines projects which has been increased to 88% under the restructuring agreement.

In exchange for the increased share of dividends and to align the partners with Coro shareholders, Coro has agreed to issue each of the two Philippines partners, who are also Officers of the Philippine subsidiary, with 20,000,000 ordinary shares in Coro at a price of 0.3p (representing a total of £60,000 each) – a 43% premium to the closing mid-market price on 24 January 2023 (the “New Ordinary Shares”).

50% of the New Ordinary Shares will be subject to lock-in restrictions until first power production and revenue on the first Philippines renewable energy project, with the remaining 50% subject to lock-in restrictions until first power production and revenue on the second Philippines renewable energy project. Further announcements in relation to the issue of the Ordinary Shares, will be made by the Company in due course.  

As Coro continues its renewables journey in South East Asia this announcement is pretty much self explanatory. This partner restructuring is preparing the way for these larger 100MW projects in the Philippines in order to get ready for FID/RTB. 

I have recently, like most, been hearing that management at Coro has become a bit more active and Twitter has been all over Balochistan and further SE Asia deals in particular. Should this be the case there is every chance that Coro might be about to come back onto the radar screen.

If that is the case then the shares at 0.225p, having halved since the year’s peak may well be worth, as they used to say, a turn of the head’. 

KeyFacts Energy Industry Directory: Malcy's Blog