Prospex Energy plc (LSE:PXEN) has restarted electricity production at its El Romeral gas-to-power plant in Andalucía, Spain, via its wholly owned subsidiary Tarba Energía.
Operations recommenced following the installation and commissioning of a temporary rental transformer, which will remain operational until a newly manufactured transformer from Spain is delivered and installed. The move restores the plant’s ability to export power to the grid and resume revenue generation from electricity sales.
With production back online, Tarba can adjust output in response to prevailing Spanish power market dynamics, optimising pricing and operational performance. Recently appointed CEO Tom Reynolds is also focusing on regulatory engagement to secure permits for a proposed well programme at Romeral, aiming to unlock additional gas supply and support further asset development.
Despite the operational progress, the company’s broader outlook remains constrained by weak financial fundamentals, including ongoing operating losses and sustained negative operating and free cash flow over multiple years. Although leverage is relatively low, technical indicators remain unfavourable, with the share price trading below key moving averages and a negative MACD reading. Valuation metrics are also under pressure, reflecting a very high price-to-earnings ratio and no reported dividend yield.
More about Prospex Energy
Prospex Energy is an AIM-quoted investment company focused on European gas and power projects, targeting onshore and shallow offshore opportunities with relatively short paths to production. The company’s strategy centres on acquiring undervalued assets, increasing gas output to generate internal cash flow, and reinvesting proceeds to expand its production portfolio.
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