SIMEC Atlantis Energy – Preliminary Results

SIMEC Atlantis Energy – Preliminary 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 preliminary results for the year ended 31 December 2017.

OPERATIONAL HIGHLIGHTS

  • In December 2017 SIMEC Atlantis Energy Limited announced a deal to create a diversified renewable energy platform of scale by agreeing to acquire the entire issued share capital of SIMEC Uskmouth Power Limited ("SUP") from SIMEC UK Energy Holdings Limited, a member of the GFG Alliance.
    Consideration for the Acquisition comprises the issue by Atlantis to SIMEC of new Atlantis Ordinary Shares resulting in SIMEC holding Atlantis Ordinary Shares representing 49.99 per cent. of the Enlarged Share Capital of Atlantis
    Following the acquisition, it is proposed that 220MW of capacity at the SUP power station in Wales will be converted to use a waste derived energy pellet as fuel.
    The transaction is intended to be the first of a number of acquisitions from the GFG Alliance that will transform Atlantis into a diversified energy company of scale owning development and generating assets across the sustainable energy spectrum, supplementing its existing portfolio of tidal assets.
  • 2017 saw significant progress on the flagship MeyGen Phase 1A tidal energy project, with all four turbines successfully installed and generating power to the grid during the year resulting in ROC accreditation and revenue generation.
  • Formal completion of the construction phase was achieved in early 2018. The array has generated more than 7GWh of energy to date and in March 2018 set a new world record for monthly production from a tidal stream array, generating 1,400MWh.
  • In November 2017, signed heads of terms with the Duchy of Lancaster for an option for the long-term lease of the riverbed required to develop the Wyre estuary tidal barrage and flood protection project. 

FINANCIAL HIGHLIGHTS

  • The consolidated group cash position at 31 December 2017 was £5.6 million (2016: £10.2 million), including £3.8 million held at MeyGen Limited (2016: £8.6 million).
  • Initial revenue recognised on the MeyGen project following successful takeover of three turbines in Phase 1A of the project during H2 2017.
  • Group loss for the year of £10.6 million (2016: £7.3 million).
  • Group total equity at 31 December 2017 of £60.2 million (2016: £66.6 million).
  • In May 2017, Atlantis raised £4.1 million before expenses from new and existing shareholders. In July 2017, Atlantis raised a further £5.0 million, before expenses, through a five year bond with a coupon of 8%, maturing in 2022. Funds raised continue to be used for incremental project development activities across the Atlantis portfolio and to secure opportunities for portfolio growth.

POST YEAR END HIGHLIGHTS

  • In April 2018, the MeyGen Phase 1A project completed the construction phase and officially entered the 25 year operations phase. At 6MW capacity, MeyGen is the world's largest tidal stream array.
  • In the period from April to June 2018, Atlantis raised £5.0 million, before expenses, through a second five year bond launched through Abundance investment platform.
  • In May 2018, an equity fundraising raised £20.0 million to secure working capital funding for the enlarged group, subject to completion of the acquisition of SUP which has now occurred.
  • On 15 June 2018 the Company successfully completed the acquisition of SUP, the owner of a power plant in South Wales which the Group intends to convert to use waste derived energy pellets as fuel.
  • Following shareholder approval of the SUP transaction, the Company changed its name to SIMEC Atlantis Energy Limited (formerly Atlantis Resources Limited).
  • The Group continues to pursue tidal stream projects globally and has recently submitted a strategic plan to the French government setting out plans to deliver 1GW of power by 2025 at le Raz Blanchard.

Tim Cornelius, Chief Executive of Atlantis, commented:  "We are delighted with the progress made at MeyGen this year where we have achieved a significant number of milestones including record turbine installation times, ROC accreditation and revenue generation from power sales. When coupled with the success of the SIMEC announcement in December, 2017 has been the most important year in the Company's history. The SIMEC partnership provides us with transformational growth prospects as we move into an exciting new era, building a diversified sustainable energy business of material scale with the support of SIMEC and the GFG Alliance.

"Our focus now is on progressing the proposed conversion of the Uskmouth power station. We also remain focused on seizing the opportunities associated with the GFG Alliance's high quality renewable power asset pipeline by acquiring and developing operational, cash yielding projects to drive the business forward and create a renewable energy platform that will deliver attractive returns for our shareholders." 

The full Annual Report and Group financial statements will be available to download from the Company's website www.simecatlantis.com later today and the Annual Report will be distributed to shareholders. 

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