SAE releases interim results
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
Arden Partners PLC - Joint Broker
+44 (0) 20 7614 5900
Notes to Editors
SAE is a global developer, owner and operator of sustainable energy projects with a diverse portfolio in various stages of development.