REG - SIMEC AtlantisEnergy - SAE releases interim results

SIMEC Atlantis EnergyAnnouncement

30/09/2022 07:01

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RNS Number : 2374B  SIMEC Atlantis Energy Limited  30 September 2022

 

 

 

RNS

30 September 2022

SIMEC ATLANTIS ENERGY LIMITED
("SAE", the "Company" and, together with its subsidiaries, the "Group")

 

SAE releases interim results

 

SAE announces its unaudited Interim Results for the six months ended 30 June
2022. A complete version of the results can be found on the Company website
(www.simecatlantis.com/investor-relations/company-documents).

 

Summary of Results

 

The overall loss before tax of £8.6 million for the six months ended 30 June
2021 compares to a loss of £10.7 million reported for the same period in
2021. The reduction in loss compared to the corresponding period last year was
mainly as a result of the restructuring implemented during the second half of
2021 that resulted in a significant reduction in costs and various asset
impairments. However, the results were adversely impacted by the service
outages of three of the four turbines at MeyGen during the first half of this
year. The position is expected to improve during the second half of the year
with contributions from the two turbines that have been successfully
redeployed in March and September. The results for the interim period also
exclude GHR, the hydro projects development business that was disposed of in
December 2021.

 

Finance costs in the current period are materially in line with the same
period last year.

 

The unaudited consolidated cash position of the Group at 30 June 2022 was
£4.1 million (30 June 2021: £3.8 million). Included in cash and cash
equivalents in the statement of financial position are encumbered deposits of
£0.8 million (30 June 2021: £1.5 million).

 

Graham Reid, CEO of SAE, commented:

 

At the beginning of 2022 the business set three key priorities:

 

1.     Win a Contract for Difference (CfD) to deliver further deployment
of turbines at our MeyGen site.

2.     Release value at the Uskmouth site by developing a Battery Energy
Storage System (BESS) project.

3.     Lay the foundations to take the lessons learnt from the Uskmouth
conversion project to develop a pipeline of new opportunities.

 

I'm very pleased to report we are making excellent progress with each of
these.

 

We have been successful in the UK Government's Application Round 4 and have
secured the CfD for our MeyGen project for 28MW at a strike price of
£178.54/MWh. This is by far the largest tidal stream project, with secured
revenue support, anywhere in the world.

 

The site is already home to the world's largest tidal array, and we have just
successfully redeployed the 3rd of 4 turbines at site. This year the site
accounted for c.70% of the global tidal stream total output. The project has
the potential to deliver tidal stream energy at scale, with huge opportunity
for our business, our shareholders and all those involved with the tidal
industry.

 

The Uskmouth BESS project is making excellent progress and is on target for
financial close in Q1, 2023. We have recently announced the receipt of funds
of £6m associated with this project with a further £4m due at financial
close. Following the success of this first BESS project, we are working
towards adding further BESS projects on the site.

 

Finally, we are working with a number of world-leading organisations to
identify significant coal conversion opportunities in Europe to apply the
expertise gained at Uskmouth.  SAE will continue to explore these
opportunities and hope to make good progress with at least one of them in
2023.

 

 

For more information, please contact

 SIMEC Atlantis Energy Limited               +44 (0) 7739 832 446
 Sean Parsons, Director of External Affairs
 Investec Bank PLC - NOMAD and Joint Broker  +44 (0) 20 7597 5970
 Jeremy Ellis

 Ben Griffiths

 Arden Partners PLC - Joint Broker             +44 (0) 20 7614 5900

 Ruari McGirr

 Simon Johnson

 

Notes to Editors

 

SAE is a global developer, owner and operator of sustainable energy projects
with a diverse portfolio in various stages of development.

https://www.simecatlantis.com/ (https://www.simecatlantis.com/)

 

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