Coro Energy PLC (AIM:CORO) is pushing ahead with necessary work to support its strategic pivot toward renewables and is set to benefit from its proposed funding agreements, analysts say.
Coro announced Vietnamese lender HDBank had offered a debt financing agreement to support the roll out of its solar panels in the country on Thursday.
Negotiations also continue with Capton Energy over the sale of a stake in the company’s existing rooftop solar portfolio in return for funding meanwhile, Coro added in an update.
SP Angel analysts noted the update came as part of the company’s wider shift away from gas resources into renewable energy.
This includes the proposed €7.3 million sale of its Italian gas portfolio, which is set to help fund the shift.
Coro’s board believes such a shift “is a more value accretive use of its resources,” analysts highlighted, with the latest deal set to see the energy firm install rooftop solar panels on 900 Mobile World Investment Corporation sites.
“The company’s renewables pivot is still in its early phases,” SP Angel said.
“[It] would benefit from the recently proposed tie-up with Capton Energy, which is an experienced international renewables player with a substantial balance sheet.”
Looking ahead, SP Angel said the progress of the gas sale agreement talks and the farm-down process for the Mako development in Indonesia would be of keen interest during the shift.
Shares climbed 5% to 0.21p.