On 21 December 2018, Global Energy Ventures Limited (ASX: GEV) announced that it was successful in extending its port agreement with Meridian LNG Holdings Corp. (Meridian) and Gas sales agreement with Uniper Global Commodities SE (Uniper). The extension given for the gas sales agreement is 31 December 2019 and for commercial operability till 1 January 2023.
The GEV’s agreement with Meridian will secure the port meridian gas sales right up to 300 MMscf/d through the GSA with Uniper till 21 December 2021 which is equivalent to 2.3 mtpa of LNG. To secure the agreement, the company has agreed to pay an amount US$240,000 per annum which will be paid quarterly in the calendar year 2019.
Further on completion of the ABS testing requirements for the CNG Optimum 200 ship and short listing of four shipyards, GEV will have opportunities to identify the nearby gas resources within a range of 2500 km from the port meridian which is technically and commercially viable for CNG. Further, it will strengthen the UK gas prices.
The official listing date of GEV on ASX is 21 March 2005. Since then, the company has maintained consistency in giving a negative performance. The last ten years performance of the company is -94.19%. The previous one-year performance of the company is -58.33%.
For the FY2018 ending on 30 June 2018, the company made a net loss of $5,964,422. The balance sheet of the company looks quite healthy as the company can maintain a net asset base of $13,582,187 with a debt-equity ratio of 0.33 (as per Thomson Reuters). The company owns a total current asset of $5,418,900 and a total current liabilities of $750,892 which indicates that the company is in a position where it can meet its working capital requirement and clear the short-term obligations. However, FY2018 reports a rise in the accumulated loss which might create a negative impact on the investors and the shareholders of the company. It also highlights a weak operating performance of the company. The total shareholder’s equity is worth $13,582,187.
By the end of FY2018, there is an increase in the net cash and cash equivalent of the company. The net cash available by the end of the fiscal year 2018 is $5,380,088. The extension of the sales agreement and the company’s outlook could not influence the share price of the company. By the end of the trading on 21 December 2018, the closing price of the share was A$0.175 which is similar to yesterday’s closing price. The stock holds a market capitalization of A$57.12 million.
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