Analys Zazz Energy: Agreement to restart the Amfilochia plant signed

Today, Zazz Energy announced the conversion of the previously communicated principal agreement into a signed contract for the restart of the Amfilochia plant. The plant has been inactive since April 2022, but operations are expected to be resumed by the end of June 2023. Zazz Energy receives compensation for electricity delivery in arrears; thus, the plant is expected to generate revenues from Q3 2023.

Over the past year, the company’s share price has declined significantly following production halts and frequent changes in senior management. However, the restart of the Amfilochia plant, along with two upcoming projects (Patras 1 and 2) scheduled to commence operations by the end of 2023, are positive steps towards getting the business back on track. It is important to note that securing financing remains crucial for these endeavours.

While the risks associated with the company are still considered high, we maintain our previous analysis that there is potential for favourable returns for risk-willing investors.

Read our latest research update here.

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