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Interim Results for the six months ended 30 June 2014
Rame Energy, an international power generator and engineering company, has provided its interim results for the period ended 30 June 2014.
Highlights:
· Successful listing on AIM in April 2014 to facilitate the ongoing implementation of the Company’s strategy to become a leading IPP supplying energy to major corporations in Chile
· Strong growth and contracts won across all three business divisions: On-Grid Power Generation, Off-Grid Power Generation and Engineering Services
· Low cost acquisition of established UK solar business, Beco, strengthens the Engineering Services Division’s in house solar capabilities and provides credibility to pursue large and small solar projects in Chile and world-wide
· On-Grid Power Generation:
o Construction of the first two wind projects, totalling 15MW, is progressing on schedule and budget, with targeted commissioning by the end of 2014
o Exclusive framework agreement for up to US$69m of equity financing signed with existing equity partner Santander Investment Chile Limitada for the next four Chilean wind projects totalling 118 MW
o PPA signed for one of these four, the 9MW Punta Chome project, to provide all the power generated to Empresa Electrica ERNC-1 SpA
· Off-Grid Power Generation (Small Scale):
o MOU signed with TSX listed Mandalay Resources Limited to provide 1.8MW of wind power for a minimum of five years from Rame’s own 1.8MW wind farm, to be constructed at the Cerro Bayo mine in Chile
· Revenue for the period of US$397,944 and loss of US$1,226,016 – in line with Company’s expectations following completion of the IPO and the positioning of Rame to deliver rapid short term strategic growth in on grid, off grid and engineering services divisions
Post Period End Highlights:
· Engineering and Marine Services:
o MOU between Beco and Pakistan based engineering company Vital Tech Engineering & Services (Private) Limited to provide off-grid, renewable energy based, power supply systems for a variety of applications
o Relocated to a new 3,000 sq ft waterside workshop premises in Plymouth – supplying marine engineering services to private customers, commercial vessel operators and government agencies
o Purchase order from subsidiary of Barrick Gold Corporation for the immediate design, supply and installation of new wind monitoring equipment at Barrick’s operations at the 20 MW Punta Colorada wind farm Chile
· Raised a total of £1.05m in new equity and debt to accelerate the due diligence and final preparatory work on the next 118MW of wind projects to be financed alongside Santander
Tim Adams, Rame’s Chief Executive Officer, said, “Thanks to the progress made during the period, Rame is ideally positioned to capitalise on a broad spectrum of exciting power generation opportunities in Chile and beyond. Whilst our financials are lower than the comparative period, this was expected and reflects both our focus on preparing our near term project pipeline for an accelerated delivery with our partner Santander and crystallising the first critical off grid PPA project for a mine in southern Chile. Additionally, we have bolstered our engineering capabilities and potential future revenues across the business via the acquisition of established UK solar company Beco. We recognise solar generation plays an important and growing role in all our markets and we now have the expertise to offer complete solar engineering and construction solutions in support of our on grid, off grid projects and service businesses as well as being well positioned to benefit from the expected growth in the UK installation market. The commissioning of our first two on-grid wind farms at the end of the year will be a key milestone for Rame as will the progress of the smaller off grid project in Patagonia. At this point we will have delivered strong progress and achieved key milestones in all three divisions providing a strong platform from which we will be able to generate further significant growth in 2015.
“Rame has an established and growing blue chip industrial client base for energy and engineering services but we are also now working with major financial partners such as Santander to create the financial structure necessary to allow the business to react quickly to the substantial and highly cash generative opportunities that exist in our niche markets. I believe this is testament to the strength of our team and its capabilities, our proven ability to deliver robust projects and economically attractive power solutions to both our service clients and power purchasers, and our comprehensive understanding of, and reach within, our key target markets. With this in mind, and on the back of a very proactive effort to drive the business forward during the first six months of the year, we look forward to providing regular updates on our primary activities, as we focus strongly on project delivery and revenue and earnings growth. Our long track record as a competent, multi-disciplinary engineering business and project developer continues to underpin our rapid transition to Independent Power Producer capable of producing strong earnings from quality power projects”
