Okay numbers for SCEE but the reason to be excited about this company are the structural tailwinds behind the company, which they have spelt nicely in the highlight section of the media release announcement.

Short-term investors might have expected a little more growth this year (not sure the guidance) with a posible sell-off in the share price, but their future expectations for FY25 plus 'FY26 and beyond' should soothe any concerns. Maybe. I don't know. Market can be silly in the short-term.

Three key matters stand out for me as to WHY this announcement qualifies as ‘material’ & potential catalysts for the recent price increases..

1.     SCEE has been awarded ‘balance of plant’ contract

2.      Whilst the Collie project will be largely complete in 2025, there is clearly more projects to come over the NEXT 5 years.

3.     Strong tie up with Synergy, WA’s largest energy supplier and closely related to the WA government and their ambitious decarbonisation plans.

It should be noted that this (the Collie project) is the 3rd project by Synergy with the previous two (known as KBESS1 & KBESS2) going to Power Electronics who bill themselves the #1 world leader in manufacture of solar inverters etc. Apparently a company which started in Spain but is now hugely USA based.  So, big feather in the SXE cap to unseat such a large contender. BTW, the Collie project is 10 times the size of the other two projects.

The WA government is investing over $3bn in new wind farms & battery storage systems with the intention of fully closing two coal-based mines – Collie (Oct 2027 retirement date) and Muja C & D (retirement dates to be April 2025 & Oct 2029 respectively). These retirement dates would suggest at least another large battery storage project. Both these coal mines are operated by Synergy.

Conclusion: Good link between WA government – Synergy & SXE = proven expertise to handle big projects which other states might note!

So, expertise on batteries to store renewable energy sources, data centres and an already existing stream of recurring income = KABOOM!