REG - Mast Energy Dvlpmts. - Pyebridge Revenue Updates

Mast Energy DevelopmentsAnnouncement

12/09/2024 07:00

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RNS Number : 8550D  Mast Energy Developments PLC  12 September 2024

Mast Energy Developments PLC

(Incorporated in England and Wales)

(Registration Number: 12886458)

LEI :213800HFVHGJ9YGO9F71

Share code on the LSE: MAST

ISIN: GB00BMBSCV12

('MED' or 'the Company')

 

Dated: 12 September 2024

 

Mast Energy Developments PLC ('MED' or 'the Company')

 

Pyebridge Final Revenue for July Increases With 16%, and August Revenue Update

 

Mast Energy Developments PLC is pleased to announce an update regarding its
Pyebridge 8.1MW flexible power generation asset ("Pyebridge").

 

Key Highlights:

 

·    First refurbished 2.7MW genset final revenue tally for July 2024
increased by 16% to c. £66,000 (up from c. £57k previously reported)
following receipt of Imbedded Benefits;

·    Preliminary revenue for August 2024 of c. £46k before receipt of
Imbedded Benefits;

·    Resulting in average revenue per MW month of c. £21k;

·    Current Capacity Market gross profit income payment of c. 25k per
month;

·    Gross profit margin improved to 57%;

·    Electricity Sales Price achieved during August outperformed market
with c. 75%;

·    Pyebridge is already cashflow positive;

·    Second 2.7MW genset refurbishment progress going according to plan;
and

·    Application for maximum 8.1MW capacity CM contract to be submitted
end of September.

 

Pieter Krügel, MED CEO, commented: "We are very pleased with the ongoing
performance of Pyebridge's first 2.7MW refurbished genset. Not only have we
seen a 16% increase in July's final revenue tally, we have also seen a marked
improvement in the gross profit margin and market outperformance. We expect
Pyebridge's performance to improve as we grow the generating capacity.

 

"Pyebridge's performance has proven Pyebridge as our pilot test site to
optimise and prove the business model. This is now happening. Furthermore,
Pyebridge has demonstrated we can secure asset-level (non-equity) finance to
operate these sites, and we have demonstrated that sites can generate free
cash flow post site-level cost of capital, which we are confident we can
further improve as we scale up due to economies of scale. This provides an
excellent framework to replicate for more sites as we grow ultimately to 300+
MW of generating capacity. We have shown we can produce an average revenue per
MW per month of c. £21,000 based on Pyebridge's actual results for July and
August, and we look forward to updating the market with ongoing performance
data."

 

Stay up to date with MED's latest news and updates by joining our emailing
list and social media channels, as follows:

 

MED emailing list - https://med.energy/email-alerts/
(https://med.energy/email-alerts/)

MED LinkedIn page -
https://uk.linkedin.com/company/mast-energy-developments-plc
(https://uk.linkedin.com/company/mast-energy-developments-plc)

MED X (formerly Twitter) handle - @mastplc

 

Further details of Key Highlights:

 

Further to the Company's previous announcements dated 7 August 2024 and 20
August 2024 respectively, the first 2.7MW refurbished genset's maiden trading
results for July 2024 have now been reconciled and confirmed as total revenue
of c. £66,000 representing a 16% increase in the preliminary revenue
previously reported. This follows the receipt of Imbedded Benefits for July,
which usually happens a month in arrears.

 

Moreover, preliminary revenue for August is currently tallied at £46k before
the receipt of Imbedded Benefits, notwithstanding that August typically sees
less than usual demand for flexible generation due to high wind generation.
Pyebridge continued to outperform the market during August, with achieved
actual average electricity sales price per MWh sold of £106 compared to the
average Wholesale Market price of £60 over the same period, which resulted in
a 75% outperformance.

 

In addition to the PPA revenue as noted above, Pyebridge is also receiving its
current Capacity Market contract's associated annual gross profit margin
income of c. £308,000 from the government, as previously announced. Based
on the latest numbers, Pyebridge has achieved a gross profit margin of around
57% (before depreciation).

 

Looking forward, major conventional power plants typically undergo maintenance
and downtime during spring and fall, which creates the so-called Mar/Apr &
Sept/Oct "shoulder months" that provide reliable seasonal opportunities for
flexible generation that are required to fill the gap and maintain system
stability. Therefore, the expectation is that September and October will see
increased revenues.

 

Work on the 2(nd) of Pyebridge's 3x 2.7MW (thus 8.1MW in total) gensets is
progressing according to plan. As previously announced, the overhaul of the
2(nd) genset enables, and it is expected that Pyebridge will apply for, its
next T-1 CM contract in the upcoming CM pre-qualification assessment window
and subsequent bid auction for the 2025/2026 delivery year at the maximum
8.1MW generation capacity, which will result in increased contractual gross
profit margin income received from that contract.

 

The Project Finance with RiverFort, has enabled the successful completion of
the first genset's overhaul, as well the commencement of the 2nd genset's
overhaul, and MED is appreciative of RiverFort's ongoing support as its
asset-level strategic funding partner, in order to grow the business.

 

To give more insight into the work-stream involved in overhauling the genset,
including photos of key stages during the process, which has now been updated
following the successful completion of the first overhaul, please visit the
MED website, "Pyebridge Overhaul Story" webpage at
https://med.energy/?page_id=4466 (https://med.energy/?page_id=4466) .

 

ENDS

 

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy/)
or contact:

 Pieter Krügel   info@med.energy (mailto:info@med.energy)  Mast Energy        CEO

                                                           Developments PLC
 Jon Belliss     +44 (0)20 7399 9425                       Novum Securities   Corporate Broker

 

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