Energy World Corporation to Sell Siemens Turbines for US$350m to Help Fund LNG Pivot

Energy World Corporation (ASX: EWC) has agreed to sell its Siemens gas and steam turbines to Nasdaq-listed Hallador Energy Company for US$350 million as part of a broader asset monetisation strategy.

The transaction covers two Siemens SGT6-5000F gas turbine packages and one SST6-5000 steam turbine package.

Energy World described the sale as an execution point from its previously disclosed strategic review and evaluation of value realisation opportunities across its asset base.

The company’s focus will now turn to other assets, including continued development of the Pagbilao liquefied natural gas (LNG) platform and its assets in Indonesia and Australia.

Milestone Payment Structure

Energy World expects to receive payments through a staged escrow structure tied to packing, delivery, inspection, and completion milestones.

Hallador will deposit or direct up to US$35m to suppliers to facilitate the packing and loading of the turbines.

A further US$50m will be deposited into escrow within five business days after the later of 31 August or delivery of the gas turbines, before release to Energy World once endorsed bills of lading and third-party payment evidence are supplied.

The remaining US$265m will be deposited into escrow on or before the later of 30 September or the fifth business day after gas turbine delivery.

That final amount will be released in two tranches, with US$132.5m payable after receipt of a conformity assessment from the original equipment maintenance provider and the balance payable at completion.

Inspection and Refurbishment

The gas turbines are required to be inspected and refurbished in the US by a recognised original equipment maintenance provider.

The turbines are expected to reach the delivery point in mid to late August and arrive at the provider’s facilities around the end of September, subject to logistical arrangements linked to the relocation.

The provider has prepared a baseline estimate of approximately US$22m for required works, which are expected to take about 13 weeks.

Hallador has agreed to fund the baseline estimate, while any additional works of up to a further US$22m will be shared equally between the buyer and Energy World.

Any costs above that amount will fall to Energy World, subject to an aggregate refurbishment liability cap of US$315m.

Immediate Financial Impact

Energy World expects estimated net proceeds of approximately US$331 million, after transaction costs and assuming no material adjustment to baseline restoration costs, with Energy World expecting to recognise the transaction in its FY26 financial results.

Energy World anticipates a non-cash impairment of approximately US$285m to the carrying value of its power plant assets, based on their carrying value of approximately US$617m at 31 December 2025 less estimated net sale proceeds, and is also assessing potential accounting implications for associated LNG hub assets that had a carrying value of approximately US$131m at 31 December 2025.

Executive chair Alan Jowell said the transaction demonstrated progress against the company’s strategic review and monetisation of selected assets to unlock value for shareholders.

“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,” Mr Jowell said.

“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.