Vulcan Energy's Cash Falls to EUR 129.4 Million Even as Lionheart Funding Begins
Published on 11/01/2026 at 15:32 | Editorial boerse-global.de
Vulcan Energy has begun drawing on the EUR 2.2 billion financing package assembled for its Lionheart project, the company said on Friday, confirming that the first tranches of that capital are now flowing. The announcement landed alongside third-quarter 2026 results that showed a shrinking cash pile — and a share price that closed the session down 11%.
The quarterly report details where the money went. Net cash used in investing activities reached EUR 97.961 million, while operations consumed a further EUR 11.108 million net. Against those outflows, Vulcan booked EUR 53.7 million from the first two strategic equity contributions under the Lionheart package, supplemented by EUR 10.7 million in German state grant funding. Those figures mark both the arrival of payments from strategic backers and the start of disbursements under the public support scheme.
Two Measures of the Balance Sheet
Cash and cash equivalents stood at EUR 129.432 million at the close of the reporting quarter, down from EUR 193.880 million at the start of the period. On a broader basis that includes deposits accessible after 90 days, Vulcan put its available funds at EUR 209.4 million as of September 30. The gap between the two figures reflects nothing more than the treatment of those term deposits.
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On the ground at Lionheart, drilling and construction are running to schedule and within budget, according to the quarterly update. The company also flagged the test of its seventh well, carried out after the quarter closed, which confirmed matrix reinjection and lent support to the production scenario underpinning the project.
That result builds on a technical milestone Vulcan reported on October 15: testing at well LSC-3a verified reinjection into the reservoir's sandstone matrix, shoring up a core assumption behind Lionheart's production planning. First commercial operation is targeted for the second half of 2028. Under planned operating conditions, Vulcan pegged the injection capacity implied by the test at roughly 64 standard litres per second — a figure the company described as an interpretation of the test rather than achieved steady-state output.
Ludwig Adds a Second Pillar
Separately, Vulcan released a preliminary feasibility study for Project Ludwig. The study assigns the project a pre-tax net present value of EUR 2.6 billion at an 8% discount rate and an internal rate of return of 25.0%. Both metrics are outputs of the preliminary economic assessment.
The quarterly report documents the project's progress and the state of its financing; it does not attribute a cause to the day's share price decline.
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