Energy World Corporation Limited (ASX:EWC) to Sell its Siemens Gas and Steam Turbines for US$350 Million
2 June 2026
Price Sensitive Announcement $
Highlights:
- EWC has signed an agreement to sell its gas and steam turbines to NASDAQ-listed Hallador Energy Company (Nasdaq: HNRG) for US$350 million
- Sale aligns with EWC’s previously disclosed strategy to evaluate and execute alternative value realisation and monetisation opportunities across the Company’s asset base
- Transaction value represents almost four times the amount originally invested by the Company approximately ten years ago
- Estimated net proceeds of approximately US$331 million after transaction costs, assuming no material adjustment to Baseline Estimate of Restoration Costs
- Milestone payment structure includes up to US$35 million to facilitate packing and loading, US$50 million upon delivery of gas turbines, and US$265 million deposited into escrow on or before 30 September 2026
- Gas turbines are expected to reach the delivery point mid to late August 2026 and arrive at the OEM Service Provider’s facilities around end of September 2026
- Sale expected to result in a non-cash impairment to the carrying value of Power Plant assets of approximately US$285 million and will be recognised as part of EWC’s FY26 financial results
- EWC shareholder approval is not required in connection with the Sale under the ASX Listing Rules
- Focus will now turn to the continued development of the Pagbilao LNG platform and assets in Indonesia and Australia
Overview:
Energy World Corporation Limited, an Asia-Pacific focused energy company with power generation and LNG assets across the Philippines, Indonesia and Australia, is pleased to announce it has agreed to sell its Siemens gas and steam turbines for US$350 million to NASDAQ-listed Hallador Energy Company. The Sale represents execution of the Company’s previously disclosed strategic review and evaluation of monetisation opportunities across its asset base.
The turbines are unique in that they have never been fully installed, commissioned or fired and can be delivered within a relatively short timeframe relative to widely reported lead times of five years or more for comparable new equipment from original equipment manufacturers. Under the terms of the Sale, the gas turbines are required to be inspected and refurbished in the United States by a recognised OEM Service Provider, with a Baseline Estimate of refurbishment costs of approximately US$22 million — to be funded by the Buyer. Additional Work costs of up to a further US$22 million will be shared equally between the Buyer and the Company.
Energy World Corporation Executive Chairman Alan Jowell commented: “The Sale is an important transaction for EWC and demonstrates the Company’s execution against a key element of its strategic review, namely the monetisation of selected assets to unlock value for shareholders. It follows our recognition that the Philippines power market continues to evolve. Increasing penetration of renewable generation is changing dispatch dynamics for thermal power assets, reducing both average WESM prices and expected operating hours.
“At the same time, global demand for gas turbines has strengthened considerably, driven by rapid growth in electricity demand from AI, data centres and cloud infrastructure. This dynamic created an attractive opportunity to realise value through a competitive sale process, achieving a transaction value of almost four times the amount originally invested by the Company approximately ten years ago.
“Importantly, once completed, the Sale will introduce significant non-dilutive capital to the Company. These proceeds are expected to support the resolution of various legacy balance sheet matters and the continued advancement of EWC’s broader LNG platform strategy, while also providing flexibility for the Company as it considers funding requirements and capital management initiatives.”
Milestone payment structure
The Company expects to receive proceeds under the Sale across a structured milestone payment schedule. Up to US$35 million will be deposited into escrow to facilitate the packing and loading of the turbines. A further US$50 million will be deposited into escrow within five business days after delivery of the gas turbines, targeted for mid to late August 2026. The remaining US$265 million will be deposited into escrow on or before 30 September 2026, with US$132.5 million released upon receipt of the Conformity Assessment from the OEM Service Provider and the balance released at Completion following satisfaction of customary conditions including completion of Restoration Work.
Accounting and strategic implications
Based on preliminary assessments, the Sale is expected to result in gross proceeds of US$350 million and estimated net proceeds of approximately US$331 million after transaction costs. The Sale is expected to result in a non-cash impairment to the carrying value of the Power Plant assets of approximately US$285 million, based on the carrying value of those assets as at 31 December 2025 of approximately US$617 million less estimated net proceeds. The Company is also continuing to assess the potential accounting implications for the associated LNG Hub assets, which had a carrying value of approximately US$131 million as at 31 December 2025, noting that management continues to progress plans to develop the LNG terminal as a standalone third-party access enterprise.
Based on advice received to date, the Company does not currently expect the Sale to give rise to material income tax or capital gains tax liabilities in the relevant jurisdictions. Jefferies Group LLC acted as principal financial adviser to the Company, with Texas Capital Bank acting as co-adviser and K&L Gates as legal adviser.
With the turbine sale progressing toward completion, EWC’s strategic focus now turns to the continued development of the Pagbilao LNG platform and its broader asset base across Indonesia and Australia.
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