SIMEC Atlantis Energy Limited – Interim Results

SIMEC Atlantis Energy Limited – Interim Results

SIMEC Atlantis Energy Limited, the global developer, owner and operator of sustainable energy projects with a diversified portfolio of more than 1,000 megawatts in various stages of development, is pleased to announce its unaudited Interim Results for the six months ended 30 June 2019.

OPERATIONAL HIGHLIGHTS

The MeyGen tidal power project in Scotland has now exported over 21 GWh of electricity to the national grid and the array has operated at above 90% availability factor during 2019. These are the best operating results ever achieved on the MeyGen project to date.

During September, Atlantis announced our ambitions to develop the world’s largest ocean powered data center in Caithness, Scotland.  The data center will accelerate the buildout of the MeyGen site by providing a pathway to construction that is not reliant on the UK government’s limited support schemes for renewable energy. This project will also help Scotland build up more data resilience domestically as well as providing access to much needed international data connections for Scotland.

In the same month, we entered into a Heads of Terms with Alderney Electricity Limited (‘AEL’) which sets out the intention to enter into a 25-year fixed price power purchase agreement covering a minimum annual load of 5GWh. This PPA will eventually underpin the financial investment case for our tidal power projects currently being developed in France where tidal power generated in French waters will be exported to the Channel Islands.

At our flagship Uskmouth power station conversion project in Wales, Stage 1 of the Front End Engineering Design (“FEED”) was completed in H1 2019 and a contract tender has been issued for the design, supply, installation and commissioning of the full combustion system, including large scale combustion testing. The results of this tender are expected imminently. The conversion project remains on track to commence operations by 2021.

 

FINANCIAL HIGHLIGHTS

The consolidated Group cash position at 30 June 2019 was £5.1 million (31 December 2018: £9.3 million), including £1.8 million held at MeyGen Limited (31 December 2018: £2.4 million).

Revenue of £2.0 million in the period (2018: £1.3 million), the majority from MeyGen power sales.

Group loss before tax for the period of £12.4 million (2018: £9.1 million). The £3.3 million increase relates mainly to the consolidation of SIMEC Uskmouth Power (“SUP”) from 15 June 2018.

Group total equity at 30 June 2019 was £117.6 million (31 December 2018: £119.6 million).

In March 2019, an equity fundraising raised over £5 million, before expenses, the net proceeds are being used for the Group’s general corporate services.

 

Tim Cornelius, Chief Executive of Atlantis, commented:

“The performance of the MeyGen tidal power array during 2019 is testament to our investment and belief in the commercial scale prospects of tidal power to date. Reliable, predictable revenue generation from energy extracted in an environmentally benign manner. We now look forward to working with Government and industry to deliver the next phases of MeyGen in partnership with world leading data centre operators and the local community in Caithness. 

The Uskmouth conversion is making good progress and it is a privilege to be involved in such a flagship project. This conversion addresses two major societal issues; firstly, the increasing demand for electricity and secondly the productive use of non-recyclable waste destined for landfill. Uskmouth tackles these issues whilst maintaining and creating jobs in South East Wales.

This project represents the application of 21st century technology (novel fuel development and emission abatement) to 20th century infrastructure (repurposing a coal-fired power station destined for decommissioning).  The project also brings clear long-term regional socio-economic benefits to South East Wales, maintaining and potentially increasing employment in the Newport area. Importantly, it will provide flexible, baseload generation to local energy intensive companies in the Newport area. 

Both MeyGen and the Uskmouth project have created remarkable opportunities for the Atlantis team to forge new paths and demonstrate leadership in innovation and delivery of solutions for some of the challenges which face society today whilst at the same time creating near and long term shareholder value. The full Interim Report will be available to download from the Company’s website www.simecatlantis.com today. 

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