Prospex Energy (AIM:PXEN) confirmed that Tarba Energía S.L., operator of the Romeral gas-to-power plant in Andalucía, Spain, has installed a new electrical transformer, replacing a rental unit and cutting monthly operating costs by approximately €14,000.
Prospex, the AIM-quoted investment company focused on European gas and power projects, owns a 100% stake in Tarba.
The rental transformer had been in place since February to keep the plant running while the permanent replacement, ordered in September 2025, was manufactured.
Tarba's team swapped the units between 9 and 10 September, with generation and power exports resuming on 11 September; overnight generation on 10 September reached 15.25 hours and has continued since.
The final instalment on the new transformer, €187,632, is due 60 days after installation and will be funded from existing cash resources.
Prospex said Tarba was self-sufficient on a cash basis through July and August, removing the need for funding from the parent company, aided by strong electricity pricing during the peak summer months.
"Tarba has been self-sufficient through July and August, demonstrating its potential to generate sustainable cash flow; the €14,000 per month reduction in rental fees will further enhance its profitability", said Tom Reynolds, Prospex's chief executive.
News Intelligence what this means for the company
Prospex Energy's Spanish gas-to-power plant Romeral has replaced a temporary rental transformer with a permanent unit, cutting monthly operating costs by €14,000. The swap occurred in mid-September after the permanent transformer was ordered in September 2025 and manufactured over the intervening months. The move is incremental cost discipline: Tarba demonstrated cash self-sufficiency in July and August on strong summer electricity pricing, and this €14,000 monthly saving (€168,000 annualized) will modestly improve that position going forward.
The transformer replacement is a routine operational efficiency gain, not a material event. It confirms Tarba's ability to operate without parent funding during peak seasons, but the €14,000 monthly saving is small relative to the company's broader cash generation profile and does not alter the investment thesis around the plant's core viability or Prospex's capital allocation strategy.
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