REG - ATOME Energy PLC - Half-year Report
26/09/2022 07:00
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RNS Number : 5363A ATOME Energy PLC 26 September 2022
26 September 2022
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Unaudited Half Year Results for the Six Months Ended 30 June 2022
Current Trading Update
ATOME Energy (AIM: ATOM), the only pure international green hydrogen and
ammonia production company on the London Stock Exchange, with large-scale
projects of over 500MW in South America and Europe concentrating on energy
and food security, together with hydrogen mobility projects, is pleased to
announce its unaudited results for the six-month period ended 30 June 2022
which are set out below together with a current trading update.
H1 2022 Highlights:
· Operating loss in period US$2.5 million in line with expectations
with costs of projects to be capitalised only after they reach final
investment decision stage, financed from available funds from flotation
· Since listing on AIM on 30 December 2021, ATOME Energy Group
(ATOME or the "Group) in less than 9 months has achieved the following key
milestones on its roadmap to developing its projects:
· Signed a long-term 60MW industrial scale Power Purchase Agreement
securing baseload 24/7 electricity supply for the Group's Phase 1 Villeta
project in Paraguay in addition to the now enlarged 300MW Paraguay project
referred to at the time of flotation the latter of which is progressing
positively with concrete discussions taking place with relevant authorities
and stakeholders
· Appointed the Multinational Engineering Consultancy, AECOM, a US
Fortune 500 Company, as the Owner's Engineer for its current Paraguay projects
· Purchased a 75-acre site for the Phase 1 facility in Villeta
adjacent to both the newly built Villeta sub-station and near our customers
with the benefit of navigable river access for export
· Appointed a local experienced FEED contractor for the
electromechanical work at the Villeta sub-station with environmental, water,
soil and groundwork studies in hand
· Tender in progress with qualified reputable international
contractors for the full project FEED contract for Villeta project - results
of tender expected in next 4 weeks, FID targeted by end Q1 2023 with
construction commencement projected mid 2023
· Appointed Natixis Corporate Investment Bank, one of the global
leaders in hydrogen and energy infrastructure funding, as ATOME's financial
advisor to structure and secure financing for the Villeta project through to
construction
· Commenced discussions with multi-lateral funding institutions
with take-on KYC in process and significant interest being shown in our
project in both industry and financial communities
· Entered into memoranda of understanding with the National Civil
Aviation Authority of Paraguay and the Paraguay Barge Association regarding
the potential use and benefit of hydrogen and ammonia
· Ordered a 1MW electrolyser unit and commenced site preparation
work for ATOME Mobility Division in Paraguay in co-operation with the
Concrete-Mix and Automotor Group, respectively owners of the largest cement
facilities in Paraguay and the oldest Hyundai and Isuzu vehicle dealer in
South America
· Notwithstanding the current well-known issues in the power sector
in Europe the Iceland project continues step by step with discussions centred
on the power suppliers and key stakeholders with Green Fuel ehf, ATOME's
Icelandic subsidiary, having secured a grant for ISK 25,000,000 (approximately
USD$175,000) from F.h. Orkusjóður, the government-led Energy Fund
· ATOME is furthermore increasingly active in developing future
growth opportunities for the Company, including new projects and partnership
opportunities in Latin America, the Mediterranean and Eastern Europe
Current Trading Update
ATOME continues to make progress on its projects with Paraguay in particular
running ahead of expectation in accordance with the goals set by the
Directors.
In the next 6 months, ATOME is targeting the following milestones for its
projects:
· Extended Power Purchase Agreements in Paraguay
· Site clearance, preparation of land at Villeta with completion of
relevant land, water, soil, social and environmental studies
· Start of physical electromechanical works in Villeta pursuant to
the FEED currently in progress
· Appointment of main facility FEED contractor for Phase 1 Villeta
with receipt of the study in Q1 2023
· Procurement and selection of the main equipment suppliers
· Appointment of EPC contractor with main sub-packages to be
identified and to be tendered
· Final Investment Decision on Villeta Project
· With ATOME's financial adviser, complete the project funding
package with significant interest already being shown on a project level from
multi-laterals and green infrastructure funds
· Shortlisting long term offtakers for production from Villeta
· Ordering of fueller for its mobility division and bringing into
Paraguay first vehicles
· Maturing power supply negotiations in Iceland to PPA stage
· The addition of new country entries expanding ATOME's footprint
beyond the current geographic portfolio
Phase 1 of Villeta is on track to commence main site construction by mid-2023
with a view to commissioning of the facility by end 2024/first part 2025. The
Group is also in advanced discussions with global off-takers for its hydrogen
and ammonia, with good interest shown in all of ATOME's
prospective Paraguay production.
The Group is on the ground in Iceland via its Green Fuel subsidiary, in
detailed discussions with all the major power providers, and is receiving
broad political support for Green Fuel's hydrogen and ammonia projects with
Group also exploring potential international new markets for its next growth
phase.
ATOME's new mobility division is progressing on track with its first 1MW
electrolyser currently being built in the UK and scheduled for commissioning
by the end of Q1 2023, with first revenues projected in that year.
We view the future with increasing confidence as we concentrate on maintaining
the momentum shown since we came to the market together with seeking to expand
our current portfolio of interests.
Peter Levine, Chairman and Olivier Mussat, CEO, jointly commented: "These
maiden half year results as a publicly traded green hydrogen and ammonia
production company demonstrate the underlying progress achieved by ATOME in
the space of under 9 months.
"Since the start of the year we have added a significant industrial scale
project in Villeta, Paraguay, to our portfolio of projects of now some 500MW
in potential size, signing a landmark power purchase agreement giving us 24/7
baseload electricity at prices that allow us to compete on a worldwide stage,
as well as creating a separate mobility division with electrolyser ordered
with first revenue scheduled for 2023. At the same time our management roster
and expertise has necessarily expanded whilst always keeping an eye on costs.
"We are at the forefront of our industry, delivering large scale projects
realistically able to be brought into production on a fast-track, at a world
leading low cost of production, thanks to the present availability of
economical baseload 24/7 stable 100% renewable power, with existing
infrastructure and near end customers making our project very attractive
globally.
"Energy and food security is not only in clear focus in the turbulent present
times but will be a priority for decades to come as it is recognised that
energy transition is a necessity and not a luxury and is of pressing strategic
need evidenced by world events as well as for the all-important environmental
reasons. ATOME's business model and the demonstrable progress we are rapidly
making puts us at the forefront of our industry as we are providing the
solutions now to the key issues of our times of energy and food security.
"We view the future of ATOME with increasing confidence".
The 2022 Half Year Report and Financial Statements will be made available at
https://www.atomeplc.com/ (https://www.atomeplc.com/)
There will be an analyst call today at 0930h BST. Those analysts wishing to
join the call should register to receive an invitation by contacting
atome@tavistock.co.uk (mailto:atome@tavistock.co.uk)
There will also be a presentation for investors today at 1300h GMT on the
Investor Meet Company platform. Investors can sign up to Investor Meet
Company for free and add to meet ATOME ENERGY PLC via:
https://www.investormeetcompany.com/atome-energy-plc/register-investor
(https://www.investormeetcompany.com/atome-energy-plc/register-investor)
For more information, please visit https://www.atomeplc.com
(https://www.atomeplc.com) or contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com (mailto:info@atomeplc.com)
Beaumont Cornish (Nominated Adviser) +44 (0) 20 7628 3396
Roland Cornish, Michael Cornish
Liberum (Joint Broker) +44 (0) 20 3100 2000
Cameron Duncan, Kane Collings
SP Angel (Joint Broker) +44 (0) 20 3490 0470
Richard Hail, Caroline Rowe
finnCap (Joint Broker) +44 (0) 20 7220 0500
Christopher Raggett, Tim Harper
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, Charles Baister atome@tavistock.co.uk (mailto: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 focusing on green hydrogen and
ammonia production with over 500-megawatt of projects
in Paraguay and Europe and through this addressing the important questions
of energy and food security.
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 world scale 60MW power
purchase agreement with ANDE, the state energy company in Paraguay for
production of green hydrogen and ammonia targeted to start operations at or
around end 2024.
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. 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.
Financial Review to 30 June 2022
The condensed financial statements present the interim results for ATOME
Energy for the first full six months of operations as an independent
AIM-listed business focused on producing, marketing and distributing green
hydrogen and ammonia.
Operating loss for the Group in line with expectations totalled US$2.5 million
for the 6 months ended 30 June 2022. No costs incurred in relation to the
Company's projects during this period have been capitalised. Costs incurred in
relation to the projects will be capitalised once they reach final investment
decision stage.
The comparative results for the six months ended 30 June 2021 and year ended
31 December 2021 relate to activity under control of President Energy PLC,
with a total loss of US$0.6 million for the six months ended 30 June 2021 and
a loss of U$2.2 million for the year ended 31 December 2021, including IPO
costs.
Net cash used by operating activities totalled US$3.7 million for the 6 months
ended 30 June 2022 (US$2,000 and US$24,000 received from operating activities
for 6 months ended 30 June 2021 and year ended 31 December 2021,
respectively).
The comparative amounts include receipt of short-term facility loans from
President Energy PLC and FIIP a member of the Peter Levine group of investment
companies, totalling US$0.6 million and US$1.4 million in the 6 months ended
30 June 2021 and year ended 31 December 2021, respectively, fully repaid, and
included in the net cash used in operating activities for 6 months ended 30
June 2022.
Operating deficit generated in the six months ended 30 June 2022 was financed
primarily by the receipt of net proceeds received from issue of shares at
Admission totalling US$3.7 million in six months ended 30 June 2022
(US$0.001 million in six months ended 30 June 2021 and US$1.8 million in
the year ended 31 December 2021).
Additional financial support is available to the Group in the form of an
Unconditional Standby Equity Facility Agreement whereby Peter Levine, Chairman
and one of his investment vehicles, PLLG Investments Limited, have agreed to
subscribe for shares at the placing price of 80p per share at the call option
of the Company at no cost and at any time during the period to end June 2023.
This provides an additional £3.0 million facility available to the Group
should it so require after considering other forms of financing available.
The results of the Group are presented in US Dollars as all its budgeting,
cost management and future trading is or will be denominated in US Dollars.
The foreign exchange gains and losses arising from translation from the Group
entities functional currency to US Dollars are taken to the Translation
reserve on the statement of financial position.
6 months 6 months Year to
to 30 June to 30 June 31 Dec
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Income from grants 31 - 24
Loss before tax (2,501) (591) (2,243)
Net cash (used by)/received from operating activities (3,710) 2 24
Proceeds from issue of shares (net of expenses) 3,689 1 1,849
Net cash/(debt) 1,633 (582) 450
Cash balance 1,633 - 1,865
Condensed Consolidated Statement of Comprehensive Income
6 months 6 months Year to
to 30 June to 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
Administrative expenses 3 (2,531) (591) (2,267)
Investment grant 31 - 24
Operating loss (2,500) (591) (2,243)
Finance costs (1) - -
Profit / (loss) before tax (2,501) (591) (2,243)
Income tax (charge)/credit
Current tax income tax (charge)/credit - - -
Deferred tax being a provision for future taxes - - -
Total income tax (charge)/credit - - -
Loss for the period from continuing operations (2,501) (591) (2,243)
Other comprehensive income
- Items that may be reclassified subsequently
to profit or loss (413) - 56
Non-controlling interest share of the comprehensive loss 66 - -
Total comprehensive loss for the period - - -
attributable to the equity holders of the Parent Company (2,848) (591) (2,187)
Loss per share from continuing operations US cents US'000 US cents
Basic loss per share 4 (7.70) (1.20) (8.96)
Diluted loss per share 4 (7.70) (1.20) (8.96)
Condensed Consolidated Statement of Financial Position
30 June 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
ASSETS
Non-current assets
Goodwill 6 3 6
Property, plant and equipment 5 47 - 45
53 3 51
Current assets
Trade and other receivables 6 1,915 - 6,355
Cash and cash equivalents 1,633 - 1,865
3,548 - 8,220
TOTAL ASSETS 3,601 3 8,271
LIABILITIES
Current liabilities
Trade and other payables 7 296 11 1,198
Short-term facility 8 - 581 1,415
296 592 2,613
Non-current liabilities
Trade and other payables 7 10 - 22
10 - 22
TOTAL LIABILITIES 306 592 2,635
EQUITY
Share capital 87 1 87
Share premium 7,653 - 7,653
Translation reserve (369) - 56
Profit and loss account (4,666) (591) (2,243)
Share base payment reserve 656 - 83
Equity attributable to owners of the parent 3,361 (590) 5,636
Non-controlling interest (66) - -
TOTAL EQUITY 3,295 (590) 5,636
TOTAL EQUITY AND LIABILITIES 3,601 3 8,271
Condensed Consolidated Statement of Changes in Equity
Share capital and premium Retained earnings Share based payment reserve Translation reserve Equity attributable to owners of the parent Non-controlling interest Total
equity
US$000 US$000 US$000 US$000 US$000 US$000 US$000
Balance as at 6 January 2021 - - - - - - -
Shares issued on company formation 1 - - - 1 1
Transactions with owners 1 - - 1 2 - 1
Loss for the period (591) (591)
Exchange differences on
translation - - - - - - -
Total comprehensive loss 1 (591) - 1 (589) - (589)
Balance as at 30 June 2021 1 (591) - 1 (589) - (589)
Share-based payments - - 83 - 83 - 83
Shares issued on reorganisation 86 - - 86 86
Offer of shares to public 7,653 - - - 7,653 - 7,653
Costs of issue new shares - - - - - -
Transactions with owners 7,740 (591) 83 1 7,233 - 7,233
Loss for the period - (1,652) - - (1,652) - (1,652)
Exchange differences on translation - - 55 55 55
Total comprehensive income/(loss) - (1,652) - 55 (1,597) - (1,597)
Balance as at 1 January 2022 7,740 (2,243) 83 56 5,636 - 5,636
Share-based payments - - 573 - 573 - 573
Subscriptions - - - - - - -
Issued in settlement - - - - - - -
Transactions with owners - - 573 - 573 - 573
Loss for the period - (2,501) - - (2,501) - (2,501)
Non-controlling interest share in comprehensive loss 66 - - 66 (66) -
Exchange differences on
translation 12 - (425) (413) - (413)
Total comprehensive
income/(loss) - (2,423) - (425) (2,848) (66) (2,914)
Balance as at 30 June 2022 7,740 (4,666) 656 (369) 3,361 (66) 3,295
Condensed Consolidated Statement of Cash Flows
Six months ended 30 June 2022
6 months 6 months Year to
to 30 June to 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Cash flows from operating activities - (Note 9)
Cash generated/(consumed) by operations (3,710) 2 24
(3,710) 2 24
Cash flows from investing activities
Acquisition Paraguay - (3) -
Acquisition Iceland - - (3)
Additions to property plant and equipment (14) - (3)
(14) (3) (6)
Cash flows from financing activities
Proceeds from issue of shares (net of expenses) 3,689 1 1,849
Repayment of obligations under leases (12) - (2)
3,677 1 1,847
Net increase/(decrease) in cash and cash equivalents (47) -
Opening cash and cash equivalents at beginning of year 1,865 - 1,865
Exchange (losses)/gains on cash and cash equivalents (185) - -
Closing cash and cash equivalents 1,633 - 1,865
Notes to the Financial Statements
Six months ended 30 June 2022
1. Nature of operations and general information
ATOME Energy PLC (the Company) is a public company limited by shares and
incorporated in England in the United Kingdom under the Companies Act 2006.
The address of the Company's registered office is Carrwood Park, Selby Road,
Leeds, LS15 4LG. The Company's and its subsidiaries' (the Group) operations
and principal activities include planning, development and execution of the
projects to produce hydrogen and green ammonia using renewable energy. The
Company is quoted on the AIM market of the London Stock Exchange (ticker:
ATOM), and is headquartered in Leeds, UK, with offices in Asunción, Paraguay
and Akureyri, Iceland.
These condensed consolidated interim financial statements (the interim
financial statements) have been approved for issue by the Board of Directors
on 20 September 2022. The financial information for the year ended 31 December
2021 set out in this interim report does not constitute statutory accounts as
defined in Section 434 of the Companies Act 2006. The financial information
for the six months ended 30 June 2022 and 30 June 2022 was neither audited nor
reviewed by the auditor. The Group's statutory financial statements for the
year ended 31 December 2021 have been filed with the Registrar of Companies.
The auditor's report on those financial statements was unqualified, did not
draw attention to any matters by way of emphasis and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006
2. Basis of preparation
The interim financial statements do not include all the information required
for full annual financial statements and should be read in conjunction with
the consolidated financial statements of the Group for the year ended 31
December 2021, which have been prepared in accordance with UK adopted
International Accounting Standards.
These financial statements have been prepared under the historical cost
convention, except for any derivative financial instruments which have been
measured at fair value. The accounting policies adopted in the 2022 interim
financial statements are the same as those adopted in the financial statements
for the year ended 31 December 2021, as included in the 2021 Annual report.
6 months 6 months Period to
to 30 June to 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
3. Administrative expenses
Directors remuneration and related costs (including non-executive Directors) -
717 167
Staff costs 332 - -
Expenditure by ATOME Limited under President Energy - 591 1,249
Cost of issue for existing shares - - 679
Share-based payments 573 - 83
Depreciation 12 - 2
Other 897 - 87
2,531 591 2,267
Expenditure by ATOME Limited under President Energy
Director fees - 358 737
Legal fees - 5 55
Consultancy - 101 248
Finance and other administration - 127 209
- 591 1,249
6 months 6 months Period to
to 30 June to 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
4. Earnings / (loss) per share
Net profit / (loss) for the period attributable
to the equity holders of the
Parent Company (2,501) (591) (2,243)
Number Number Number
'000 '000 '000
Weighted average number
of shares in issue 32,500 492 25,021
Earnings /(loss) per share US cents US '000 US cents
Basic (7.70) (1.20) (8.96)
Diluted (7.70) (1.20) (8,96)
5. Property, plant and equipment
Leased Other Total
Assets Assets
US$000 US$000 US$000
Cost
At 6 January 2021 - - -
At 30 June 2021 - - -
Additions 47 - 47
At 1 January 2022 47 - 47
Additions - 14 14
At 30 June 2022 47 14 61
Depreciation/Impairment
At 6 January 2021 - - -
At 30 June 2021 - - -
Charge for the period 2 2
At 1 January 2022 2 - 2
Charge for the period 12 - 12
At 30 June 2022 14 - 14
Net Book Value 30 June 2022 31 14 47
Net Book Value 30 June 2021 - - -
-
Net Book Value 31 December 2021 45 - 45
30 June 2022 30 June 2021 31 December 2021
(Unaudited) (Unaudited) (Audited)
6. Trade and other receivables US$000 US$000 US$000
Outstanding on share issue 1,279 - 6,128
Prepayments 553 - 151
Other receivables 83 - 76
1,915 - 6,355
30 June 2022 30 June 2021 31 December 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
7. Trade and other payables
Current
Other payables 272 11 258
Costs of issue for new and existing shares outstanding - - 918
Current portion of leases 23 - 22
296 11 1,198
Non-current
Non-current portion of leases 10 - 22
10 - 22
Total carrying value 306 11 1,220
8. Short-term facility (current)
Loan on acquisition of Atome Limited - 581 1,415
- 581 1,415
9. Reconciliation of operating profit to net cash outflow from operating
activities
6 months 6 months Period to
to 30 June to 30 June 31 December
2022 2021 2021
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Profit/(loss) from operations before taxation (2,501) (591) (2,243)
Depreciation and impairment of property,
plant and equipment 12 - 2
Interest accretion on lease liability 1 - -
Share-based payments 573 - 83
Operating cash flows before movements
in working capital (1,915) (591) (2,158)
(Increase)/decrease in receivables (409) - (199)
Increase/(decrease) in short-term facility (1,412) 581 1,415
(Decrease)/increase in payables 14 11 966
Foreign exchange loss/(gain) 12 - -
Net cash generated by/(used in)
operating activities (3,710) 1 24
10. Capital commitments
The Group's outstanding capital commitments in relation to its projects
totalled US$1.5 million as at 30 June 2022 and US$2.4 million as at the date
of this report.
-ends-
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