Malcy16 Dec 2025 07:37
Obviously contains the normal health warning . Long article so I have only pasted his comments
DYOR
These deals and their associated funding deals are a major step forward for Chariot as they move inexorably towards being a major player in South African energy generation and trading as well has having a high quality independent oil & gas business.
Today’s news is highly significant, acquisition of the two major stakes in Western Cape wind farms, where work is about to start and with commissioning expected in 2027. Make no mistake these are both of a huge scale and will make a substantial contribution.
This will happen as Chariot have a JV with Etana Energy which means that they have a play in both generating capacity and also in trading, and again in sizeable scale. Chariot are building a big infrastructure project that will be added to in a number of ways.
I expect further building out of generating projects which will bring substantial, long term income and this is utility scale, not a rooftop solar business which will generate income with potential over many years. I also expect that the ACWA Power discussions are continuing and this will be a long term J/V across South Africa to add to the generation offering.
As for financing, as you would expect this is very smart, at $100m it is not small but the way that Chariot has got its key players on board and it will fund the stakes in the generating assets, ensure that they retain control over renewables and strengthen the company.
What is perhaps most important is that Chariot are raising all this money as a multi-layered issue and at subsidiary level which ensures that there is no dilution to shareholders and means that they retain control over their own destiny.
Finally in Oil & Gas, which will remain as a key part of Chariot going forward as they eventually separate the different businesses and will itself be in at least two different areas. Firstly I am expecting that they will remain in Morocco with a re-sized Anchois development maybe with a partner and also with the acreage in Namibia where licence negotiations are continuing.
In Oil & Gas Chariot have also said that they intend to make a an acquisition in production which the company are confident that will create cash flow for both sides of the business. This would make the, what will be a totally separate business, well financed and sensibly structured.
I am confident that Chariot are putting together what will be a really substantial, fully financed business with great long term potential in what are all growth markets with the ability to deliver big revenues and sizeable profits.
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