REG - ATOME Energy PLC - Half-year Report
28/09/2023 07:00
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RNS Number : 9150N ATOME Energy PLC 28 September 2023
28 September 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Unaudited Results for the Six Months Ended 30 June 2023
Current Trading Update
ATOME Energy (AIM: ATOM), the only international green hydrogen, ammonia and
fertiliser project development company on the London Stock Exchange, with
large-scale projects of over 600MW 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 2023 which are set out below together with a current trading update.
H1 2023 Highlights:
- ATOME recorded a loss for the six months ended 30 June 2023 of
US$2.9 million (US$ 2.5 million for six months ended 30 June 2022 and US$5.6
million year ended 31 December 2022), with US$2.1 million of costs capitalised
in relation to Villeta project FEED studies, as these activities are directly
related to design and construction of the project currently proceeding on a
fast track to EPC contract and a Final Investment Decision ("FID") in
Q4 2023.
- In January 2023, ATOME signed a mandate with IDB Invest, the
private-sector arm of the multilateral Inter-American Development Bank, which
has agreed to provide certain grant funding towards the costs of the
Environmental and Social Impact Assessment ("ESIA"), with the ESIA being a key
step towards project development and positively contributing towards decision
making by all funders before FID.
- In May 2023, the Company completed a successful placing of shares to
Baker Hughes and other institutional shareholders totalling US$4.6 million and
announced the extension of its Villeta project to production of green
fertiliser, aiming to serve the significant and growing agricultural market in
South America and worldwide.
- In July 2023, ATOME increased its 120-megawatt ("MW") power purchase
agreement ("PPA") at Phase I Villeta Project to 145MW and entered a 300MW
pre-PPA agreement for Phase II Yguazu Project with commencement of necessary
studies, increasing total committed power supply in Paraguay to 445MW. ATOME
also obtained an approval in relation to its application for tax-free zone
status at Villeta Project conditional on completion of environmental
studies.
- Since announcing its move to green fertiliser production, ATOME has
received multiple written expressions of interest from leading international
players for the whole of the offtake of Phase I production, which aims to
potentially displace up to 500,000 tons of CO2eq per year.
- Investment Memorandum for Villeta project in Paraguay was circulated
to selected potential project-level equity and debt investors in August 2023
and an FID for Phase I Villeta is currently expected in Q4 2023.
Current Trading Update
ATOME continues to make progress on its projects, with Paraguay in particular
running ahead of the expected goals set by the Directors.
The Company has developed into a world leading green fertiliser project
development company benefiting from the unique position of Paraguay having an
excess of competitively priced available baseload low-cost plug and play green
electricity from the grid and being located at the centre of the South
American agricultural market, which is the largest fertiliser import market in
the world.
Phase 1 of Villeta is on track to achieve FID by the end of 2023, with
construction activities commencing immediately thereafter and a significantly
expanded green fertiliser project coming on stream by the end of 2025.
During the first six months of 2023 and to the date of this report, ATOME has
been able to achieve further significant progress in developing its projects,
as well as creating a joint venture with its partners in Costa Rica through
National Ammonia Corporation ("NAC").
The Company views the future with increasing confidence as it focuses on
maintaining the momentum shown since IPO and continues to seek to expand the
current portfolio of interests.
Statement by Peter Levine, Chairman and Olivier Mussat, CEO
ATOME's results for the six months ended 30 June 2023 reflect commendable
progress for the Company.
The Villeta project alone will be the largest green fertiliser production
facility in the world when it comes on stream at the end of 2025 and has the
capability of serving domestic and South American as well as European and
Asian markets, benefiting from soon to be granted Tax Free Zone status. The
Second Phase, code named Iguazu with power already reserved, is nearly triple
the size and capacity of Villeta and could be completed within 24 months of
Viletta project commissioning.
The FEED packages for Villeta are nearing completion and negotiations for
awarding the EPC contract are at an advanced stage, working with the
internationally renowned engineers Aecom as our Owner's Engineer.
The finance process for Villeta has been launched by our advisers Natixis,
with the multi-lateral IDB Invest mandate already signed, which has already
generated significant positive interest both on a debt and equity level
internationally as well as locally. In-country visits and face-to-face
presentations have already commenced.
As sustainability and climate concerns are now impacting the food and
agricultural sectors, with carbon tariffs on fertiliser imports being
implemented in the EU from 2026, we have expanded our move into Central
America with our joint venture vehicle NAC, in Costa Rica where we have a very
prospective 100MW project. This is almost a cut and paste of Villeta in a
country which has 98% renewable power. At the same time, we have increased our
own management expertise including the appointment of Terje Bakken formerly of
Yara and Eurochem as Commercial Head. Iceland remains in our portfolio as one
for the future.
This second half of the year is an exciting time for our project progression,
and we look forward to delivering further positive news as we progress towards
FID on our first project. We view the outlook for ATOME with significant
confidence.
The 2023 Half Year Report and Financial Statements will be made available at
https://www.atomeplc.com/ (https://www.atomeplc.com/)
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
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
Cavendish Capital Markets Limited (Broker) +44 (0) 20 7220 0500
Simon Hicks, 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 600-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 145MW 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 Banking and the
multilateral IDB Invest to lead the project funding and with Front End
Engineering and Design studies 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 produce green ammonia at an industrial scale using
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 since May 2023,
Baker Hughes, a global energy technology company operating in the energy and
industry sectors.
Financial Review to 30 June 2023
The condensed financial statements present the half-year results for the six
months ended 30 June 2023 for ATOME Energy PLC, a green hydrogen, ammonia and
fertiliser project development company on the London Stock Exchange, with
large-scale projects of over 600MW in South America and Europe concentrating
on energy and food security, together with hydrogen mobility projects.
Operating loss attributable to the Group's equity holders was in line with
expectations and totalled US$ 2.9 million (US$2.5 million for the six
months ended 30 June 2022). As Villeta project has advanced with front end
engineering and design (FEED), costs incurred on the FEED contract and other
directly attributable costs totalling US$2.1 million were capitalised in the
six months ended 30 June 2023.
Net cash used by operating activities totalled US$3.3 million
(US$3.7 million for the six months ended 30 June 2022 and US$6.2 million for
the year ended 31 December 2022, respectively), with cash used by investing
activities totalling US$2.1 million.
Operating deficit and investing activities cash outflows were financed
primarily by the receipt of net proceeds received from the issue of shares in
the placing totalling US$4.6 million (US$3.7 million in six months ended
30 June 2022 and US$7.9 million in the year ended 31 December 2022).
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 2024.
This provides an additional £3.0 million facility 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 Period to
to 30 June to 30 June 31 Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Income from grants 6 31 170
Other Income - - 62
Loss before tax (2,856) (2,501) (5,598)
Net cash from operating activities (3,257) (3,710) (6,152)
Net cash from investing activities (2,070) (14) -
Proceeds from issue of shares (net of expenses) 4,583 3,689 7,965
Net cash/(debt) 2,838 1,633 3,452
Cash balance 3,634 1,633 3,452
Condensed Consolidated Statement of Comprehensive Income
6 months 6 months Period to
to 30 June to 30 June 31-Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
Administrative expenses 3 (2,870) (2,531) (5,830)
Other Income - - 62
Investment grant 6 31 170
Operating loss (2,864) (2,500) (5,598)
Finance Income 22 - 2
Finance costs (37) (1) (2)
Foreign exchange gain (loss) 23 - -
Loss before taxation (2,856) (2,501) (5,598)
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 (2,856) (2,501) (5,598)
Non-controlling interest share of the comprehensive loss 42 66 119
Loss attributable to the equity holders (2,814) (2,435) (5,479)
Other comprehensive income (loss)
Items that may be reclassified subsequently to profit or loss 256 (413) (387)
Total comprehensive profit/(loss) for the period
attributable to the equity holders of the Parent Company (2,558) (2,848) (11,345)
Earnings/ (loss) per share from continuing operations US cents US cents US cents
Basic earnings/ (loss) per share 4 (7.71) (7.70) (16.80)
Diluted earnings / (loss) per share 4 (7.71) (7.70) (16.80)
Condensed Consolidated Statement of Financial Position
30-Jun 30-Jun 31-Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Note
ASSETS
Non-current assets
Goodwill 6 7 6
Property, plant and equipment 5 3,059 46 939
3,065 53 945
Current assets
Trade and other receivables 6 2,842 1,915 2,223
Cash and cash equivalents 3,634 1,633 3,452
6,476 3,548 5,675
TOTAL ASSETS 9,541 3,601 6,620
LIABILITIES
Current liabilities
Trade and other payables 7 1,197 296 1,649
Short-term facility - - -
1,197 296 1,649
Non-current liabilities
Long Term Debt 796
Trade and other payables 7 - 10 -
796 10 -
TOTAL LIABILITIES 1,993 306 1,649
EQUITY
Share capital 106 87 96
Share premium 16,786 7,653 11,901
Translation reserve (75) (369) (331)
Profit and loss account (10,536) (4,666) (7,722)
Share base payment reserve 1,428 656 1,146
Equity attributable to owners of the parent 7,709 3,361 5,090
Non-controlling interest (161) (66) (119)
TOTAL EQUITY 7,548 3,295 4,971
TOTAL EQUITY AND LIABILITIES 9,541 3,601 6,620
Condensed Consolidated Statement of Changes in Equity
Share capital and premium Profit & loss account Other Reserves Total Non-controlling interest Total
US$000 US$000 US$000 US$000 US$000 US$000
Balance as at 1 January 2022 7,740 (2,243) 139 5,636 - 5,636
Share-based payments - - 573 573 - 573
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 loss - (2,423) (425) (2,848) (66) (2,914)
Balance as at 30 June 2022 7,740 (4,666) 287 3,361 (66) 3,295
Share-based payments - - 490 490 - 490
Offer of shares to public 4,394 - - 4,394 - 4,394
Costs of issue new shares (137) - - (137) - (137)
Transactions with owners 11,997 (4,666) 777 8,108 (66) 8,042
Loss for the period - (3,109) - (3,109) - (3,109)
Non-controlling interest share in comprehensive loss 53 53 (53) -
Exchange differences on
translation - 38 38 38
Total comprehensive
income/(loss) - (3,056) 38 (3,018) (53) (3,071)
Balance as at 1 January 2023 11,997 (7,722) 815 5,090 (119) 4,971
Share-based payments - - 282 282 - 282
Offer of shares to public 5,086 - - 5,086 - 5,086
Costs of issue new shares (191) - - (191) - (191)
Transactions with owners 4,895 - 282 5,177 - 5,177
Loss for the period - (2,856) - (2,856) - (2,856)
Non-controlling interest share in comprehensive loss 42 - 42 (42) -
Exchange differences on
translation - 256 256 - 256
Total comprehensive income/(loss) - (2,814) 256 (2,558) (42) (2,600)
Balance as at 30 June 2023 16,892 (10,536) 1,353 7,709 (161) 7,548
Condensed Consolidated Statement of Cash Flows
Six months ended 30 June 2023
6 months 6 months Period to
to 30 June to 30 June 31-Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Cash flows from operating activities - (Note 8)
Cash generated/(consumed) by operations (3,257) (3,710) (6,152)
(3,257) (3,710) (6,152)
Cash flows from investing activities
Additions to property plant and equipment (2,070) (14) -
(2,070) (14) -
Cash flows from financing activities
Proceeds from issue of shares (net of expenses) 4,583 3,689 7,965
Loan drawdown 796 - -
Repayment of borrowings - - -
Repayment of obligations under leases (13) (12) (26)
5,366 3,677 7,939
Net increase/(decrease) in cash and cash equivalents (39) (47) 1,787
Opening cash and cash equivalents at beginning of year 3,452 1,865 1,865
Exchange (losses)/gains on cash and cash equivalents (143) (185) (200)
Closing cash and cash equivalents 3,634 1,633 3,452
Notes to the Financial Statements
Six months ended 30 June 2023
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 green hydrogen, ammonia and fertiliser 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 22 September 2023. The financial information for the year ended 31 December
2022 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 2023 and 30 June 2022 was neither audited nor
reviewed by the auditor. The Group's audited statutory financial statements
for the year ended 31 December 2022 have been filed with the Registrar of
Companies. The auditor's report on those financial statements was unqualified,
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 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 2022, 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 2023 interim
financial statements are the same as those adopted in the financial statements
for the year ended 31 December 2022, as included in the 2022 Annual report.
6 months 6 months Period to
to 30 June to 30 June 31 Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
3 Administrative expenses
Directors' fees and related costs (including non-executive Directors) 833 717 2,036
Staff costs 576 143 910
Cost of issue for existing shares - - 164
Share-based payments - 573 1,063
Depreciation - 12 24
Other 1,461 1,086 1,633
2,870 2,531 5,830
4 Earnings / (loss) per share
Net profit / (loss) for the period attributable
to the equity holders of the
Parent Company (2,856) (2,501) (5,598)
Number Number Number
'000 '000 '000
Weighted average number
of shares in issue 37,019 32,500 32,606
Earnings /(loss) per share US cents US cents US cents
Basic (7.71) (7.70) (16.80)
Diluted (7.71) (7.70) (16.80)
5 Property, plant and equipment
Land Leased Asset Total
Assets Assets Under Construction
US$000 US$000 US$000 US$000
Cost
At 1 January 2022 - 47 47
Additions - - -
At 30 June 2022 - 47 - 47
Additions 918 - 918
At 1 January 2023 918 47 - 47
Additions - - 2,132 2,132
At 30 June 2023 918 47 2,132 3,097
Depreciation/Impairment
At 1 January 2022 - 2 2
Charge for the period - 12 12
At 30 June 2022 - 14 - 14
Charge for the period - 12 12
At 1 January 2023 - 26 - 26
Charge for the period 12 12
At 30 June 2023 - 38 - 38
Net Book Value 30 June 2023 918 9 2,132 3,059
Net Book Value 30 June 2022 - 33 - 33
Net Book Value 31 December 2022 918 21 - 939
6 months 6 months Period to
to 30 June to 30 June 31 Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
6 Trade and other receivables
Outstanding on share issue 2,037 1,279 1,601
Prepayments 421 553 268
Other receivables 384 83 354
2,842 1,915 2,223
7 Trade and other payables
Current
Other payables 1,187 272 1,543
Costs of issue for new and existing shares outstanding - - 84
Current portion of leases 10 24 22
1,197 296 1,649
Non-current
Long Term Debt 796 - -
Non-current portion of leases - 10 -
796 10 -
Total carrying value 1,993 306 1,649
8. Reconciliation of operating profit to net cash outflow from operating
activities
6 months 6 months Period to
to 30 June to 30 June 31 Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Profit/(loss) from operations before taxation (2,857) (2,501) (5,598)
Interest on Bank Deposits 2
Depreciation and impairment of property,
plant and equipment 12 12 24
Interest accretion on lease liability 1 1 -
Placing costs expensed 191 - -
Share-based payments 282 573 1,063
Operating cash flows before movements in working capital (2,371) (1,915) (4,509)
(Increase)/decrease in receivables (439) (409) (394)
Increase/(decrease) in short-term facility - (1,412) (1,415)
(Decrease)/increase in payables (447) 14 369
Foreign exchange loss/(gain) - 12 (203)
Net cash generated by/(used in)
operating activities (3,257) (3,710) (6,152)
9. Capital commitments
The Group's outstanding capital commitments in relation to its projects
totalled US$5.3 million as at 30 June 2023 and as at the date of this report,
with US$2.8 million due within the next 12 months.
-ends-
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