Energy Absolute Plc (EA) shares experienced a sharp 30% decline on Tuesday following the resignation of its founder and CEO amidst a fraud investigation and a downgrade of its credit rating to junk status. Despite these challenges, the renewable energy company announced plans to seek external support and strategic partnerships to bolster its operations.
EA resumed trading after disclosing it faces 19.5 billion baht of debt due in 2024 and is exploring options for strategic collaborations. The Stock Exchange of Thailand (SET) had previously suspended trading to request clarification on the company’s financial status and the impact of the ongoing fraud probe.
The company’s stocks dropped to 9.2 baht, down by 30%, with a significant increase in trading volume as selling orders surpassed buying requests. This year alone, EA has faced a 79% decrease in share value, partly due to concerns regarding its expansive business activities.
Founding CEO Somphote Ahunai resigned after allegations of procurement fraud, which he denies. The Securities and Exchange Commission (SEC) is investigating him and other executives for possible fraudulent activities involving 3.5 billion baht. Despite these challenges, EA is actively seeking strategic partners to improve its financial stability and ensure a sustainable future.
The recent credit rating downgrade by TRIS Rating highlights heightened liquidity risks for EA in the short term. The company’s debt obligations and refinancing challenges have raised concerns among creditors and investors, impacting its overall credit risk.
As EA navigates these turbulent times, the appointment of new leadership and efforts to enhance corporate governance are underway. The company is focused on regaining investor confidence, addressing debt repayment challenges, and maintaining operational continuity amidst the ongoing investigations and financial uncertainties.
