REG - Mast Energy Dvlpmts. - Record High September Revenues

Mast Energy DevelopmentsAnnouncement

07/10/2024 07:00

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RNS Number : 0749H  Mast Energy Developments PLC  07 October 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: 7 October 2024

 

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

 

Record High September Revenues

 

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

 

Key Highlights:

 

·    Preliminary revenue for September 2024 reaches record high of c.
£86,000 before receipt of Embedded Benefits(1);

·    Final revenue tally for August 2024 increased by 12% to c. £51,000
(up from c. £46k previously reported) following receipt of Embedded Benefits;

·    Average revenue per MW month for Q3 increases to c. £22k;

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

·    Average Gross profit margin for Q3 of c. 56%;

·    Electricity Sales Price achieved during September outperformed
market(2) with c. 49%;

·    Pyebridge is already cashflow positive;

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

·    Application for maximum 8.1MW capacity CM contract submitted.

 

Pieter Krügel, MED CEO, commented: "We are very pleased with the ongoing
performance of Pyebridge since the start of the refurbishment programme a few
months ago. Not only have we seen a significant increase in the preliminary
revenue for September, we have also seen a 12% increase in August's final
revenue tally. It is positive to see revenues in line with expectations during
the so-called "shoulder months" of September/October (which are traditionally
mirrored in March/April), the expectation of the board is that October should
see similar increased revenues in line with the anticipated seasonality
enhanced performance. We expect Pyebridge's performance to improve even
further as we progress with the refurbishment of the 2(nd) and 3(rd) 2.7MW
gensets and increase the generating capacity to the site's full 8.1MW
capacity."

 

"Pyebridge's increasing positive performance is a testament to the critical
need for flexible power generation in the UK. With the UK's last coal power
station officially permanently switched off on 30 September 2024, making
Britain the first major developed country to end the use of coal for
generating electricity, the need for flexible power generation has become even
more important as the transition to renewables pick up pace."

 

"Pyebridge is MED's first proven flexible generation power plant, with the
goal to grow the portfolio to 300+ MW's. We have shown that we can secure
asset-level finance in partnership with RiverFort, and we are planning to
scale the proven model at some pace. We are looking forward to updating the
market with further progress in this regard in due course."

 

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 announcement dated 12 September 2024, the Pyebridge
trading results for August 2024 have now been reconciled and confirmed as
total revenue of c. £51k representing a 12% increase in the preliminary
revenue previously reported. This follows the receipt of Embedded Benefits for
August, which usually happens a month in arrears. (1)To learn more about
Embedded Benefits, please visit MED's social media posts here -

LinkedIn
(linkedin:%20https://www.linkedin.com/feed/update/urn:li:activity:7247932837041946624)

X (formerly Twitter)

 

Moreover, preliminary revenue for September is currently tallied at £86k
before the receipt of Embedded Benefits, representing a record high for any
single month from 2023 to date. September's sterling results are in line with
expectations where the so-called Mar/Apr & Sept/Oct "shoulder months"
provide reliable seasonal opportunities for flexible generation that are
required to fill the increased gap and maintain system stability. Therefore,
the expectation is that October will see similar increased revenues.

 

Pyebridge continued to outperform the market during September, with achieved
actual average electricity sales price per MWh sold of £115 compared to the
average Wholesale Market price of £77(2) over the same period, which resulted
in a 49% outperformance. (2)The Wholesale Market price data was sourced from
Nordpool.

 

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 an average gross profit margin
for Q3 of around 56% (before depreciation).

 

Pyebridge has successfully submitted an application at the maximum 8.1MW
generation capacity for its next T-1 Capacity Market ("CM") contract in the
current CM pre-qualification assessment window and subsequent bid auction for
the 2025/2026 delivery year, which will result in increased contractual gross
profit margin income received from that contract. Work on the 2(nd) of
Pyebridge's 3x 2.7MW (thus 8.1MW in total) gensets is progressing according to
plan.

 

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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