Locality Planning Energy delivered a cash inflow of $30 million through an extensive reorganisation to commit focus to its value-adding strata network and renewable assets.
A wholesale electricity hedge position brought a $22M windfall into the lap of the Queensland company, with another $8M released from cash-backed bank guarantees.
The move frees up working capital and management hours to execute plans for a surging strata business and its vertically integrated renewable hub near Bundaberg.
As the wholesale electricity market in the sunshine state turned volatile, it became apparent the energy provider could no longer compete and encouraged customers to switch providers or incur rising costs.
Initially formed to serve a niche in the strata marketplace, LPE has seen operations grow to over 28,400 customers, counting as it takes on new networks with no upfront capital requirement.
The company said it expected the renewable energy generation business to be a key growth driver into the new year.
“This is a transformative restructuring exercise delivering a positive outcome for all stakeholders,” chairman Justin Pettett said.
“Moving forward, the Board will focus on growing the more stable strata business and developing the vertically integrated renewable assets which have potential to create significant value for shareholders.”
Meanwhile, the company will investigate opportunities to inhabit high-energy users within two solar farms while accelerating renewable asset development.
LPE’s Australian Stock Exchange-listed share price has risen 17.65 per cent today, selling at 6c (9.59 am UTC+ 8 hours).