REG - ATOME Energy PLC - Audited Results for the year ended 31 Dec 2022
27/06/2023 07:15
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RNS Number : 9664D ATOME Energy PLC 27 June 2023
27 June 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Audited Results for the year ended 31 December 2022
ATOME (AIM: ATOM), the only international green hydrogen, ammonia, and
fertiliser project development company on the London Stock Exchange, with
current large-scale projects in Latin America and Europe, as well as hydrogen
mobility projects, is pleased to announce its audited results for the year
ended 31 December 2022.
These financial statements presented are the first Annual Report and Accounts
for ATOME following a full year of operations and project development after
joining the London Stock Exchange's AIM market on 30 December 2021.
The Company's Annual Report will be posted to shareholders on 29 June 2023
together with the Notice for the Annual General Meeting.
Financial Highlights FY2022
* The financial results are presented for the Group for the full year ended 31
December 2022, with 2021 results for the period from 6 January 2021 when the
Group started its operations.
* The comprehensive loss for the year ended 31 December 2022 was US$5.9 million
(2021: US$2.2 million).
* In December 2022, the Group raised gross proceeds of US$4.3 million (2021:
US$7.8 million (US$7.0 million net)) from the issue of new shares on AIM to
Baker Hughes and other shareholders, in May 2023, providing an additional
US$4.6 million.
Annual General Meeting
The Company intends to hold the Annual General Meeting to approve the audited
financial statements at 11.00am on 25 July 2023 at Carrwood Park, Selby Road,
Leeds, LS15 4LG. The Notice will be sent with the full Annual Report on 29
June 2023.
Peter Levine, Chairman, stated:
"This is the first Annual Report and Accounts for ATOME following a full year
of activity and project development. It was only on 30 December 2021 that
ATOME became the first green hydrogen, ammonia, and fertiliser project
development company to join the London Stock Exchange's AIM market and today
ATOME remains the only pure play company in the field on the London market.
Since Admission at the end of 2021, the Company has made material and rapid
progress and has expanded its business and footprint above and beyond what was
originally planned. In the short period since the IPO, whilst not losing focus
on our core projects, we have signed world scale power purchase agreement for
our Phase One 120 MW in Paraguay, progressing our 300 MW Phase Two Project in
that country, created our Mobility Division, ordered its first electrolyser
due for delivery later this year, progressed our Icelandic project and entered
Costa Rica with a substantial local partner. Further, in May 2023, we welcomed
Baker Hughes as a strategic technological partner and investor in the Company.
Following the success in securing significant baseload renewable power supply
in Paraguay, ATOME commenced FEED studies and financing negotiations for its
first green fertiliser project in Villeta for which there is a significant
market demand. Maintaining our fast-track schedule, we expect our first phase
flagship project to progress to Final Investment Decision in Q4 2023, with the
start of full industrial scale production targeted to commence in 2025.
Significantly, our target of commencing full production of green fertiliser
places us front and centre at the forefront of the industry.
We are building projects which will produce globally traded green commodities
whilst increasing food and energy security locally. We have every confidence
that ATOME will go from strength to strength and in the years ahead become one
of the world leaders in the production of green hydrogen, ammonia, and
fertiliser, delivering capital appreciation to our shareholders from
sustainable growth whilst being an important contributor to the drive for
global net zero in the food and agriculture industries as well as mobility.
Financial
The financial statements present group results for the ATOME Energy Group for
its first full year of independent operations, following its debut in 2021 as
an independent AIM listed business focused on producing, marketing, and
distributing green hydrogen and ammonia.
Total comprehensive loss for the year ended 31 December 2022 was US$5.9
million (2021: US$2.2 million), in line with expectations, reflecting the
increased level of activity and fast track development throughout ATOME's
project portfolio.
Sustainability
ATOME acknowledges and respects the increasing emphasis on climate change
around the world. The Company aims to build a platform for a cleaner, more
sustainable future for our planet in recognition of the climate change
imperative driving nations and industries around the world to "green" their
infrastructure, operations, and products.
I would like to close by thanking all my colleagues throughout the company for
their contribution to the success of ATOME. We are looking forward to another
year of great achievement and progress."
Olivier Mussat, Chief Executive Officer, stated:
"Since its foundation and subsequent emergence as an independent AIM listed
business ATOME has made significant operational progress and is already
establishing itself as a leading international developer in the field of green
hydrogen and ammonia. ATOME's strategy has been clear since day one:
accelerate the development of sustainable and profitable green hydrogen and
ammonia by looking for reasonably sized projects that can leverage existing
infrastructure in order to be first to market producing green molecules at the
lowest cost possible near markets with existing demand.
We listed in London through our IPO in December 2021 having become a public
company two months earlier. At the time of Admission to AIM we had our two
core projects in Paraguay and Iceland, both substantive in nature and
providing significant opportunity for significant increases in shareholder
value, extending into the future. Hindsight, together with subsequent
events, has fortuitously shown ATOME to be the right company at the right time
for the green energy and fertiliser markets.
I am pleased to report that since that time, ATOME through its new Mobility
Division in Paraguay, the signing of the Villeta PPA, and the formation of a
new JV in Costa Rica has also exceeded our original expectations at the time
of the IPO both in scale and the time frame of our business. The market has
recognised the delivery of our strategy with the ATOME share price
significantly outperforming most of our peers since our listing.
A new division, ATOME Mobility was created in February 2022, dedicated to
providing a clean energy solution for heavy road transport and shipping, two
hard-to-abate industries where battery alternatives cannot provide effective
solutions using present technology. Over the past year, a number of
significant technology milestones have been reached in both hydrogen-based
mobility and shipping. These place ATOME Mobility in a prime position to
leverage its early investments as our initial focus will be on hydrogen energy
supply to the road transport sector in the most populous areas of Paraguay.
This new division runs in parallel with the planning for ATOME's large scale
green hydrogen, ammonia and fertiliser businesses in Paraguay and Iceland.
The most significant event for ATOME during the year was in May 2022, when we
signed a long term 60MW Power Purchase Agreement ("PPA") with ANDE, the
national electricity supply and distribution company of Paraguay, further
increased to 120 MW in November 2022. This is the largest single PPA ever
signed between ANDE and an industrial user. Since then, we have bought the
land for the site, engaged Urbas Energy, one of the leading hydrogen and power
EPC contractors, in co-operation with Casale, one of the world's oldest
ammonia and complex fertiliser technology companies, to lead the front-end
engineering and design (FEED) study for Villeta, with Natixis Bank and the
InterAmerican Development Bank working with us on structuring the financing
package for the project.
In January 2023, we created National Ammonia Corporation S.A (NAC), a joint
venture with Cavendish, the renewable energy arm of the Quirós family-owned
Grupo Purdy S.A., one of the largest corporations in Costa Rica, to pursue
renewable energy generation and green ammonia production. Similar to Paraguay,
Costa Rica is one of the greenest countries in Latin America with a
significant agricultural sector, presenting a great opportunity to leverage
all the work we are currently doing in Paraguay.
In May 2023, we took the decision to explore the options for developing
Villeta as a producer of green fertiliser (Calcium Ammonium Nitrate, or CAN)
as the most value accretive option for the production facility, supplying to
the fast-growing agricultural market in Mercosur and worldwide. We have also
entered into the strategic partnership with Baker Hughes who invested in the
Company and with whom we have agreed the right of first offer (ROFO) for the
supply of compressor and other equipment to our projects.
Our Iceland project is also progressing in tandem with our work elsewhere and
is now planned to come on-line mid-decade.
We believe ATOME is ideally placed to help decarbonise energy, transport, and
agriculture. Our projects will contribute significantly to fulfilling the UN's
Sustainable Development Goals (SDGs), particularly SDG 7, 9, 11, 12 and 13
which cover affordable and clean energy; industry, innovation, and
infrastructure; sustainable cities and communities; responsible consumption
and production, and: urgently combating climate change.
The increase in hydrocarbon and fertiliser prices, together with the
international emphasis on environmentally necessary green commodities and
security of supply, has provided a very fertile end market for ATOME's planned
production. We have ever increasing confidence, backed by industry interest in
us, that there will be robust demand for our production which will support
strong economics for our business, with profitability and sustainability going
hand in hand.
We look forward to delivering further material progress during the balance of
2023 as we move forward with bringing our projects on-line with FID on Villeta
projected for Q4 this year and production targeted to commence in 2025. We
intend to develop a pipeline of new international projects in other
jurisdictions as we become increasingly recognised as a leading first-mover
developer in green hydrogen and ammonia."
For more information, please visit https://www.atomeplc.com or contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations
info@atomeplc.com
Beaumont Cornish (Nominated Adviser) +44 (0) 20 7628 3396
Roland Cornish, Michael Cornish
Liberum (Joint Broker) +44 (0) 20 3100 2000
Scott Mathieson, Kane Collings
SP Angel (Joint Broker) +44 (0) 20 3490 0470
Richard Hail, Harry Davies-Ball
finnCap (Joint Broker) +44 (0) 20 7220 0500
Christopher Raggett, George Dollemore
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, Charles Baister atome@tavistock.co.uk
The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU) No
596/2014 which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon publication of this announcement, this inside information is
now considered to be in the public domain. The person who arranged for the
release of this announcement on behalf of the Company was Peter Levine,
Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green hydrogen, ammonia,
and fertiliser production with over 500-megawatt of projects in Paraguay,
Iceland and Central America.
Since its admission to AIM in December 2021 ATOME has signed its first
electrolyser purchase order for its hydrogen transport Mobility Division due
to start generating revenue in 2023 and signed a 120MW power purchase
agreement with ANDE, the state energy company in Paraguay for production of
green ammonia to produce industrial scale premium value green fertiliser in
2025. It has procured 30 hectares of land in Villeta, Paraguay for that
facility, mandated Natixis Corporate Investment Bank and the multilateral IDB
Invest to lead the project funding and the FEED study is currently underway
with the international companies Urbas and Casale.
In December 2022, ATOME entered into a joint venture with Cavendish, the
renewable energy arm of the substantial and well-established Purdy Group based
in Costa Rica and formed The National Ammonia Corporation S.A, which is owned
equally by ATOME and Cavendish.
ATOME is in the process of operational planning, sourcing and negotiations
with green electricity suppliers, equipment providers and offtake partners,
including signed memoranda of understanding and cooperation agreements in
place with key parties, to use electricity generated from existing geothermal
sources in Iceland and hydroelectric power in Paraguay and Costa Rica. All
chosen sites are located close to the power and water sources and export
facilities to serve significant domestic and then international demand.
The Company has a green-focused Board which is supported by major shareholders
including Peter Levine, Trafigura, one of the world's leading commodity and
logistics company, and Schroders, a leading fund manager, and from May 2023,
Baker Hughes, a global energy technology company operating in the energy and
industry sectors.
Financial review
"The consolidated financial statements present the group results for the year
ended 31 December 2022 and period ended 31 December 2021 for ATOME Energy
Group, an independent AIM listed business focused on producing, marketing, and
distributing green hydrogen and ammonia, as well as derivative products
including fertilisers.
Whilst ATOME Energy PLC was only formed in October 2021, to bring the green
energy business established by Molecular Energies PLC (formerly President
Energy PLC) to the market as an independent entity, the financial results have
been prepared adopting merger accounting for the Group from the beginning of
January 2021 as if it had been operating throughout this period. This follows
established practice and is consistent with the Admission Document in December
2021.
In December 2022, the Group raised proceeds of US$4.3 million gross (US$4
million net) from a share placing. Proceeds totalling US$2.5 million were
received as at 31 December 2022, with US$1.6 million net receivable to be paid
in due course. In addition, the Group raised US$5.1 million and fully received
US$4.6 million in May 2023 in a placing to Baker Hughes and some other
institutional and private investors.
Additional financial support is available to the Group in the form of a
Standby Equity Facility Agreement. Under this agreement, PLLG Investments
Limited and Peter Levine, Non-Executive Chairman have agreed to subscribe for
shares at the placing price at the option of the Company for 18 months from
December 2021. This facility was further extended to 30 June 2024 in December
2022. This makes an additional £3.0 million facility available to the Group.
In December 2022, the Group entered into a loan agreement with Sudameris Bank
in Paraguay to finance acquisition of the land plot designated for its Villeta
project. The loan agreement is for the period of eight years, with principal
repayments due in equal quarterly instalments from March 2025 and carries an
interest rate of 9.5%. per annum. This loan is secured by the value of the
above land plot, with no recourse to the Group's other assets and entities.
The financial results of the Group are presented in US Dollars as all of the
Group's budgeting, cost management and future trading are primarily
denominated and maintained in US Dollars. All translation differences arising
from translation from functional to reporting currency are taken to the
Foreign Currency Translation Reserve on the statement of financial position."
Consolidated Statement of Comprehensive Income
Year ended 31 December 2022 and period ended 31 December 2021
Note 2022 2021
US$000
US$000
Continuing Operations
Administrative expenses 2 (5,830) (2,267)
Other Income 62 -
Investment grant 170 24
Operating loss (5,598) (2,243)
Finance income 2 -
Finance costs (2) -
Loss before tax (5,598) (2,243)
Total income tax (charge)/credit - -
Loss for the year from continuing operations (5,598) (2,243)
Share of loss attributable to non-controlling interest 119 -
Loss for the year attributable to equity holders (5,479) (2,243)
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (387) 56
Total comprehensive loss for the year attributable
to the equity holders of the parent (5,866) (2,187)
Loss per share US cents US cents
Basic loss per share from continuing operations 3 (16.80) (8.96)
Diluted loss per share from continuing operations (16.80) (8.96)
Consolidated Statement of Financial Position
As at 31 December 2022 and 2021
ASSETS 2022 2021
US$000
US$000
Non-current assets
Goodwill 6 6
Property, plant and equipment 939 45
945 51
Current assets
Trade and other receivables 2,223 6,355
Cash and cash equivalents 3,452 1,865
5,675 8,220
TOTAL ASSETS 6,620 8,271
LIABILITIES
Current liabilities
Trade and other payables 1,649 1,198
Short term facility - 1,415
1,649 2,613
Non-current liabilities
Non-current portion of leases - 22
- 22
TOTAL LIABILITIES 1,649 2,635
EQUITY
Share capital 96 87
Share premium 11,901 7,653
Retained loss (7,722) (2,243)
Translation reserve (331) 56
Share option reserve 1,146 83
5,090 5,636
Non-controlling interest (119) -
TOTAL EQUITY 4,971 5,636
TOTAL EQUITY AND LIABILITIES 6,620 8,271
Consolidated Statement of Changes in Equity
Year ended 31 December 2022 and period ended 31 December 2021
Share Profit Non-
capital & and loss Other controlling Total
premium account Reserves Total Interest Equity
US$000 US$000 US$000 US$000 US$000 US$000
Balance at 6 January 2021 - - - - - -
Share-based payments - - 83 83 - 83
Shares issued on reorganisation 67 67 67
Offer of shares to public 8,071 - - 8,071 - 8,071
Costs of issue new shares (398) - - (398) - (398)
Transactions with the owners 7,740 - 83 7,823 - 7,823
Loss for the period - (2,243) - (2,243) (2,243)
Translation reserve - - 56 56 56
Total comprehensive loss for the year - (2,243) 56 (2,187) - (2,187)
Balance at 31 December 2021 7,740 (2,243) 139 5,636 - 5,636
Share-based payments - - 1,063 1,063 - 1,063
Offer of shares to public 4,394 - - 4,394 - 4,394
Costs of issue new shares (137) - - (137) - (137)
Transactions with the owners 4,257 - 1,063 5,320 - 5,320
Loss for the year - (5,479) - (5,479) (119) (5,598)
Translation reserve - - (387) (387) - (387)
Total comprehensive loss for the year - (5,479) (387) (5,866) (119) (5,985)
Balance at 31 December 2022 11,997 (7,722) 815 5,090 (119) 4,971
Consolidated Statement of Cash Flows
Year ended 31 December 2022 and period ended 31 December 2021
2022 2021
US$000
US$000
Cash flows from operating activities
Cash (used in) / generated by operating activities (Note 4) (6,152) 24
(6,152) 24
Cash flows from investing activities
Expenditure on development and production assets - -
Acquisition Paraguay - (3)
Acquisition Iceland - (3)
- (6)
Cash flows from financing activities
Proceeds from issue of shares (net of expenses) 7,965 1,849
Repayment of obligations under leases (26) (2)
7,939 1,847
Net increase in cash and cash equivalents 1,787 1,865
Opening cash and cash equivalents at beginning of period 1,865 -
Exchange gains/(losses) on cash and cash equivalents (200) -
Closing cash and cash equivalents 3,452 1,865
Notes
1. Accounting policies and preparation
The financial information set out in this announcement does not constitute the
Company's statutory financial statements and is derived from the consolidated
financial statements for the year ended 31 December 2022 and period ended 31
December 2021.
Financial statements for the year ended 31 December 2022 and period ended 31
December 2021 will be delivered in due course. The auditors have reported on
those accounts; their report was (i) unqualified, (ii) did not include a
reference to matters to which the auditors drew attention by way of emphasis
except for potential material uncertainty that may arise in the event if,
despite the Directors' stated confidence, the Company is unable to achieve
project finance by December 2024, around the Company's ability to continue as
a going concern, and (iii) did not contain a statement under section 498 (2)
or (3) of the Companies Act 2006 in respect of the accounts for 2022 and 2021.
The Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable future.
Therefore, they continue to adopt the going concern basis in preparing the
financial statements for the year ended 31 December 2022 and period ended 31
December 2021.
Whilst the consolidated financial statements from which this preliminary
announcement has been derived are prepared in accordance with International
Financial Reporting Standards ("IFRS") and applicable law, this announcement
does not itself contain sufficient information to comply with IFRS. The Annual
Report, containing consolidated financial statements that comply with IFRS,
will be sent out to shareholders by 30 June 2023.
2 Administrative expenses
2022 2021
US$000 US$000
Directors and staff costs (including non-executive Directors) 2,946 167
Expenditure by Atome Limited under President Energy - 1,249
Cost of issue for existing shares 164 679
Share-based payments 1,063 83
Depreciation 24 2
Other 1,633 87
5,830 2,267
2022 2021
Expenditure by Atome Limited under President Energy US$000 US$000
Director fees - 737
Legal fees - 55
Consultancy - 248
Finance and other administration - 209
- 1,249
3 Loss per share 2022 2021
US$000 US$000
Loss for the period attributable to
the equity holders of the Parent Company (5,479) (2,243)
Number Number
'000 '000
Weighted average number of shares in issue 32,606 25,021
US cents US cents
Loss per share
Loss per share from continuing operations (16.80) (8.96)
Diluted Loss per share from continuing operations (16.80) (8.96)
At 31 December 2022, 2,129,000 (2021: 2,091,500) share options and share
warrant awards were in issue that, if exercised, would dilute earnings per
share in the future. No dilution per share was calculated as with the reported
loss adding share options and warrants is anti-dilutive.
4 Notes to the consolidated statement cash flows
2022 2021
US$000 US$000
Loss from operations before taxation (5,598) (2,243)
Interest on bank deposits 2 -
Depreciation of property, plant and equipment 24 2
Foreign exchange difference (203)
Share-based payments 1,063 83
Operating cash flows before movements in working capital (4,712) (2,158)
Decrease / (increase) in receivables (394) (199)
Increase / (decrease) in short term facility (1,415) 1,415
Increase / (decrease) in payables 369 966
Net cash (used in) / generated by operating activities (6,152) 24
5 Segment reporting
In the opinion of the Directors, the operations of ATOME Energy PLC comprise
one class of business, the development, production and the sale of green fuel
energy and related activities.
An operating segment is a component of an entity that engages in business
activities from which it may earn revenues and incur expenses and whose
results are regularly reviewed by the Board of Directors.
The Board of Directors reviews operating results by reference to the core
principle of geographic location. The Group currently has projects in two
geographical markets: the Paraguay and Iceland. It has a head office and
associated corporate expenses in the UK.
Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Administrative expenses 614 299 4,917 5,830
Other Income (62) (62)
Investment grant (170) - - (170)
Segment costs 444 299 4,855 5,598
Segment operating profit/(loss) for the year ended 31 December 2022 (444) (299) (4,855) (5,598)
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Administrative expenses 20 8 2,239 2,267
Investment grant (24) - - (24)
Segment costs (4) 8 2,239 2,243
Segment operating profit/(loss) for the period ended 31 December 2021 4 (8) (2,239) (2,243)
Segment assets Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Goodwill 3 3 - 6
Property, plant and equipment - 939 - 939
3 942 - 945
Other assets - 44 2,179 2,223
Total assets as at 31 December 2022 3 986 2,179 3,168
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Goodwill 3 3 - 6
Property, plant and equipment - 45 - 45
3 48 - 51
Other assets 3 3 6,349 6,355
Total assets as at 31 December 2021 6 51 6,349 6,406
Segment liabilities Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Total liabilities as at 31 December 2022 51 866 732 1,649
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Total liabilities as at 31 December 2021 5 52 2,578 2,635
Reconciliation of the amounts reported for segment assets to the Group's
consolidated statement of financial position is as follows:
2022 2021
US$000 US$000
Segment assets 3,168 6,406
Group cash 3,452 1,865
Group assets as at 31 December 6,620 8,271
-ends-
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