REG - SIMEC AtlantisEnergy - Final results

SIMEC Atlantis EnergyAnnouncement

25/06/2024 07:00

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RNS Number : 6507T  SIMEC Atlantis Energy Limited  25 June 2024

25 June 2024

 

SIMEC Atlantis Energy Limited

("SAE Renewables", "SAE" or the "Company")

 

Final results for the year ended 31 December 2023 and notice of AGM

 

SAE announces its audited final results for the year ended 31 December 2023. A
complete version of the 2023 Annual Report and Accounts ("2023 Annual Report")
can be found
here: http://www.rns-pdf.londonstockexchange.com/rns/6507T_1-2024-6-24.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6507T_1-2024-6-24.pdf)

 

The 2023 Annual Report, a notice of Annual General Meeting ("AGM") and a Proxy
Form, have been posted to shareholders, and copies are available on the
Company's website at www.saerenewables.com (http://www.saerenewables.com)

 

The AGM will be held at the offices of Ashurst LLP, London Fruit & Wool
Exchange, 1 Duval Square, London, E1 6PW at 11.00 a.m. on Thursday 18 July
2024.

 

The 2023 results reflect a transformational year for the business. SAE has
delivered significant progress in the last 12 months against its targets and
established a firm foundation to deliver an exciting pipeline of sustainable
energy projects and move into becoming an owner and operator of these
projects, ensuring long-term value for our shareholders. Our strategy directly
supports UK government policy to improve energy security and achieve Net Zero
by 2050.

 

2023 Financial Highlights include:

 

·      The Group reported a profit of £23.2m, compared with a 2022 loss
of £11.1m.

·      Increase of 292% in Group revenue to £15.3m (2022: £3.9m).

·      Revenues available to the Group, which excludes ring-fenced
revenue earned by the MeyGen tidal array, rose to £10.7 million (2022: £nil)
. The sale, at Uskmouth, of a ready-to-build 230MW BESS project with a grid
connection for £10.0 million accounted for the majority of 2023 revenues,
with the balance of £0.7 million being rental income from the Uskmouth site.

·      Net Assets increased 678% to £44.2m (2022: £5.7m). The major
increase in the valuation of the Group arises from the reassessment of the
value and size of our battery storage projects.

·      Increase in EBITDA to £8.3m (2022: EBITDA loss of £5.8m).

·      Reduction of 30% in SAE's Group debt, excluding MeyGen debt, to
£13.7m (2022: £19.7m). This followed the successful execution of the lease
agreement for the 230MW BESS project with Uskmouth Energy Storage Limited. SAE
also reached an agreement with its bondholders to rephase bond repayments out
of 2024 and into periods commencing in December 2025 and culminating in a
final £7.7 million repayment in December 2029.

·      Reduction of 29% in Operating costs to £5.0m (2022: £7.0m).

 

Operational highlights include:

 

·      Final payment received on 230MW/460MWh Uskmouth Battery Energy
System Storage (BESS) projects, now under construction by Uskmouth Energy
Storage Ltd.

·      In December 2023, signed conditional land sales agreement with
Electric Land for £9.9 million for the 230MW BESS. Milestone income to be
received during 2024 and into 2025.

 

Post-period highlights

 

·      Achieved planning approval for a new 120MW/240MWh BESS which
repurposes the site of the Uskmouth power station former cooling towers.

·      Commenced development of an additional 600MW/1,200MWh of BESS at
the Uskmouth site.

·      Submitted the planning application for the Mey BESS project, near
Caithness in Scotland. SAE has an agreement option to lease the required land
and has secured a modification of the MeyGen grid connection to increase
capacity to 287MW with full import and export rights.

 

Duncan Black, Chairman of SAE Renewables, commented:

 

"I am excited about the future for SAE. We have the funding and visibility on
future revenues we need to be able to deliver our development projects and
service our debt. We have a pipeline of projects that would be the envy of
many much larger companies, and we have a Board and Executive team who have a
track record of successful delivery. I would sincerely like to thank all the
members of our team whose hard work and dedication during the past 12 months
has delivered outstanding results for SAE. To the stakeholders in our
projects, bondholders, shareholders and governments - thank you for your
continued support of our business."

 

Graham Reid, Chief Executive Officer of SAE Renewables, commented:

 

"During 2023, the business has met or exceeded all of its objectives. This
provides a great platform from which we can embark on our new strategy:
Building a Sustainable Future to 2035, advancing our transition towards
becoming an Independent Power Producer."

 

 

 

 

 

For further information, please contact:

 

 SAE Renewables                                           +44 (0)7739 832 446

 Sean Parsons, Director of External Affair

 Strand Hanson Limited (Nominated and Financial Adviser)  +44 (0)20 7409 3494

 Richard Johnson

 Rory Murphy

 David Asquith

 Zeus Capital Limited (Broker)                            +44 (0)20 3829 5000

 Louisa Waddell

 Simon Johnson

 

Notes to Editors

SAE Renewables is a global developer, owner and operator of sustainable energy
projects. SAE owns the world's flagship tidal stream project, MeyGen. SAE is
also the owner of the Uskmouth Power Station site that is being repurposed
into a sustainable energy park, initially housing one of the UK's largest
battery energy storage projects. https://www.saerenewables.com/
(https://www.saerenewables.com/)

 

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