TIDMATOM
RNS Number : 9664D
ATOME Energy PLC
27 June 2023
27 June 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Audited Results for the year ended 31 December 2022
ATOME (AIM: ATOM), the only international green hydrogen,
ammonia, and fertiliser project development company on the London
Stock Exchange, with current large-scale projects in Latin America
and Europe, as well as hydrogen mobility projects, is pleased to
announce its audited results for the year ended 31 December
2022.
These financial statements presented are the first Annual Report
and Accounts for ATOME following a full year of operations and
project development after joining the London Stock Exchange's AIM
market on 30 December 2021.
The Company's Annual Report will be posted to shareholders on 29
June 2023 together with the Notice for the Annual General
Meeting.
Financial Highlights FY2022
-- The financial results are presented for the Group for the full year ended 31 December 2022, with 2021 results for
the period from 6 January 2021 when the Group started its operations.
-- The comprehensive loss for the year ended 31 December 2022 was US$5.9 million (2021: US$2.2 million).
-- In December 2022, the Group raised gross proceeds of US$4.3 million (2021: US$7.8 million (US$7.0 million net))
from the issue of new shares on AIM to Baker Hughes and other shareholders, in May 2023, providing an additional
US$4.6 million.
Annual General Meeting
The Company intends to hold the Annual General Meeting to
approve the audited financial statements at 11.00am on 25 July 2023
at Carrwood Park, Selby Road, Leeds, LS15 4LG. The Notice will be
sent with the full Annual Report on 29 June 2023.
Peter Levine, Chairman, stated:
"This is the first Annual Report and Accounts for ATOME
following a full year of activity and project development. It was
only on 30 December 2021 that ATOME became the first green
hydrogen, ammonia, and fertiliser project development company to
join the London Stock Exchange's AIM market and today ATOME remains
the only pure play company in the field on the London market.
Since Admission at the end of 2021, the Company has made
material and rapid progress and has expanded its business and
footprint above and beyond what was originally planned. In the
short period since the IPO, whilst not losing focus on our core
projects, we have signed world scale power purchase agreement for
our Phase One 120 MW in Paraguay, progressing our 300 MW Phase Two
Project in that country, created our Mobility Division, ordered its
first electrolyser due for delivery later this year, progressed our
Icelandic project and entered Costa Rica with a substantial local
partner. Further, in May 2023, we welcomed Baker Hughes as a
strategic technological partner and investor in the Company.
Following the success in securing significant baseload renewable
power supply in Paraguay, ATOME commenced FEED studies and
financing negotiations for its first green fertiliser project in
Villeta for which there is a significant market demand. Maintaining
our fast-track schedule, we expect our first phase flagship project
to progress to Final Investment Decision in Q4 2023, with the start
of full industrial scale production targeted to commence in 2025.
Significantly, our target of commencing full production of green
fertiliser places us front and centre at the forefront of the
industry.
We are building projects which will produce globally traded
green commodities whilst increasing food and energy security
locally. We have every confidence that ATOME will go from strength
to strength and in the years ahead become one of the world leaders
in the production of green hydrogen, ammonia, and fertiliser,
delivering capital appreciation to our shareholders from
sustainable growth whilst being an important contributor to the
drive for global net zero in the food and agriculture industries as
well as mobility.
Financial
The financial statements present group results for the ATOME
Energy Group for its first full year of independent operations,
following its debut in 2021 as an independent AIM listed business
focused on producing, marketing, and distributing green hydrogen
and ammonia.
Total comprehensive loss for the year ended 31 December 2022 was
US$5.9 million (2021: US$2.2 million), in line with expectations,
reflecting the increased level of activity and fast track
development throughout ATOME's project portfolio.
Sustainability
ATOME acknowledges and respects the increasing emphasis on
climate change around the world. The Company aims to build a
platform for a cleaner, more sustainable future for our planet in
recognition of the climate change imperative driving nations and
industries around the world to "green" their infrastructure,
operations, and products.
I would like to close by thanking all my colleagues throughout
the company for their contribution to the success of ATOME. We are
looking forward to another year of great achievement and
progress."
Olivier Mussat, Chief Executive Officer, stated:
"Since its foundation and subsequent emergence as an independent
AIM listed business ATOME has made significant operational progress
and is already establishing itself as a leading international
developer in the field of green hydrogen and ammonia. ATOME's
strategy has been clear since day one: accelerate the development
of sustainable and profitable green hydrogen and ammonia by looking
for reasonably sized projects that can leverage existing
infrastructure in order to be first to market producing green
molecules at the lowest cost possible near markets with existing
demand.
We listed in London through our IPO in December 2021 having
become a public company two months earlier. At the time of
Admission to AIM we had our two core projects in Paraguay and
Iceland, both substantive in nature and providing significant
opportunity for significant increases in shareholder value,
extending into the future. Hindsight, together with subsequent
events, has fortuitously shown ATOME to be the right company at the
right time for the green energy and fertiliser markets.
I am pleased to report that since that time, ATOME through its
new Mobility Division in Paraguay, the signing of the Villeta PPA,
and the formation of a new JV in Costa Rica has also exceeded our
original expectations at the time of the IPO both in scale and the
time frame of our business. The market has recognised the delivery
of our strategy with the ATOME share price significantly
outperforming most of our peers since our listing.
A new division, ATOME Mobility was created in February 2022,
dedicated to providing a clean energy solution for heavy road
transport and shipping, two hard-to-abate industries where battery
alternatives cannot provide effective solutions using present
technology. Over the past year, a number of significant technology
milestones have been reached in both hydrogen-based mobility and
shipping. These place ATOME Mobility in a prime position to
leverage its early investments as our initial focus will be on
hydrogen energy supply to the road transport sector in the most
populous areas of Paraguay. This new division runs in parallel with
the planning for ATOME's large scale green hydrogen, ammonia and
fertiliser businesses in Paraguay and Iceland.
The most significant event for ATOME during the year was in May
2022, when we signed a long term 60MW Power Purchase Agreement
("PPA") with ANDE, the national electricity supply and distribution
company of Paraguay, further increased to 120 MW in November 2022.
This is the largest single PPA ever signed between ANDE and an
industrial user. Since then, we have bought the land for the site,
engaged Urbas Energy, one of the leading hydrogen and power EPC
contractors, in co-operation with Casale, one of the world's oldest
ammonia and complex fertiliser technology companies, to lead the
front-end engineering and design (FEED) study for Villeta, with
Natixis Bank and the InterAmerican Development Bank working with us
on structuring the financing package for the project.
In January 2023, we created National Ammonia Corporation S.A
(NAC), a joint venture with Cavendish, the renewable energy arm of
the Quirós family-owned Grupo Purdy S.A., one of the largest
corporations in Costa Rica, to pursue renewable energy generation
and green ammonia production. Similar to Paraguay, Costa Rica is
one of the greenest countries in Latin America with a significant
agricultural sector, presenting a great opportunity to leverage all
the work we are currently doing in Paraguay.
In May 2023, we took the decision to explore the options for
developing Villeta as a producer of green fertiliser (Calcium
Ammonium Nitrate, or CAN) as the most value accretive option for
the production facility, supplying to the fast-growing agricultural
market in Mercosur and worldwide. We have also entered into the
strategic partnership with Baker Hughes who invested in the Company
and with whom we have agreed the right of first offer (ROFO) for
the supply of compressor and other equipment to our projects.
Our Iceland project is also progressing in tandem with our work
elsewhere and is now planned to come on-line mid-decade.
We believe ATOME is ideally placed to help decarbonise energy,
transport, and agriculture. Our projects will contribute
significantly to fulfilling the UN's Sustainable Development Goals
(SDGs), particularly SDG 7, 9, 11, 12 and 13 which cover affordable
and clean energy; industry, innovation, and infrastructure;
sustainable cities and communities; responsible consumption and
production, and: urgently combating climate change.
The increase in hydrocarbon and fertiliser prices, together with
the international emphasis on environmentally necessary green
commodities and security of supply, has provided a very fertile end
market for ATOME's planned production. We have ever increasing
confidence, backed by industry interest in us, that there will be
robust demand for our production which will support strong
economics for our business, with profitability and sustainability
going hand in hand.
We look forward to delivering further material progress during
the balance of 2023 as we move forward with bringing our projects
on-line with FID on Villeta projected for Q4 this year and
production targeted to commence in 2025. We intend to develop a
pipeline of new international projects in other jurisdictions as we
become increasingly recognised as a leading first-mover developer
in green hydrogen and ammonia."
For more information, please visit https://www.atomeplc.com or
contact:
ATOME Energy PLC +44 (0) 113 337 2210
Nikita Levine, Investor Relations info@atomeplc.com
Beaumont Cornish (Nominated Adviser)
Roland Cornish, Michael Cornish +44 (0) 20 7628 3396
Liberum (Joint Broker)
Scott Mathieson, Kane Collings +44 (0) 20 3100 2000
SP Angel (Joint Broker)
Richard Hail, Harry Davies-Ball +44 (0) 20 3490 0470
finnCap (Joint Broker)
Christopher Raggett, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, atome@tavistock.co.uk
Charles Baister
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018. Upon
publication of this announcement, this inside information is now
considered to be in the public domain. The person who arranged for
the release of this announcement on behalf of the Company was Peter
Levine, Chairman.
About ATOME
ATOME Energy PLC is an AIM listed company targeting green
hydrogen, ammonia, and fertiliser production with over 500-megawatt
of projects in Paraguay, Iceland and Central America.
Since its admission to AIM in December 2021 ATOME has signed its
first electrolyser purchase order for its hydrogen transport
Mobility Division due to start generating revenue in 2023 and
signed a 120MW power purchase agreement with ANDE, the state energy
company in Paraguay for production of green ammonia to produce
industrial scale premium value green fertiliser in 2025. It has
procured 30 hectares of land in Villeta, Paraguay for that
facility, mandated Natixis Corporate Investment Bank and the
multilateral IDB Invest to lead the project funding and the FEED
study is currently underway with the international companies Urbas
and Casale.
In December 2022, ATOME entered into a joint venture with
Cavendish, the renewable energy arm of the substantial and
well-established Purdy Group based in Costa Rica and formed The
National Ammonia Corporation S.A, which is owned equally by ATOME
and Cavendish.
ATOME is in the process of operational planning, sourcing and
negotiations with green electricity suppliers, equipment providers
and offtake partners, including signed memoranda of understanding
and cooperation agreements in place with key parties, to use
electricity generated from existing geothermal sources in Iceland
and hydroelectric power in Paraguay and Costa Rica. All chosen
sites are located close to the power and water sources and export
facilities to serve significant domestic and then international
demand.
The Company has a green-focused Board which is supported by
major shareholders including Peter Levine, Trafigura, one of the
world's leading commodity and logistics company, and Schroders, a
leading fund manager, and from May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
Financial review
"The consolidated financial statements present the group results
for the year ended 31 December 2022 and period ended 31 December
2021 for ATOME Energy Group, an independent AIM listed business
focused on producing, marketing, and distributing green hydrogen
and ammonia, as well as derivative products including
fertilisers.
Whilst ATOME Energy PLC was only formed in October 2021, to
bring the green energy business established by Molecular Energies
PLC (formerly President Energy PLC) to the market as an independent
entity, the financial results have been prepared adopting merger
accounting for the Group from the beginning of January 2021 as if
it had been operating throughout this period. This follows
established practice and is consistent with the Admission Document
in December 2021.
In December 2022, the Group raised proceeds of US$4.3 million
gross (US$4 million net) from a share placing. Proceeds totalling
US$2.5 million were received as at 31 December 2022, with US$1.6
million net receivable to be paid in due course. In addition, the
Group raised US$5.1 million and fully received US$4.6 million in
May 2023 in a placing to Baker Hughes and some other institutional
and private investors.
Additional financial support is available to the Group in the
form of a Standby Equity Facility Agreement. Under this agreement,
PLLG Investments Limited and Peter Levine, Non-Executive Chairman
have agreed to subscribe for shares at the placing price at the
option of the Company for 18 months from December 2021. This
facility was further extended to 30 June 2024 in December 2022.
This makes an additional GBP3.0 million facility available to the
Group.
In December 2022, the Group entered into a loan agreement with
Sudameris Bank in Paraguay to finance acquisition of the land plot
designated for its Villeta project. The loan agreement is for the
period of eight years, with principal repayments due in equal
quarterly instalments from March 2025 and carries an interest rate
of 9.5%. per annum. This loan is secured by the value of the above
land plot, with no recourse to the Group's other assets and
entities.
The financial results of the Group are presented in US Dollars
as all of the Group's budgeting, cost management and future trading
are primarily denominated and maintained in US Dollars. All
translation differences arising from translation from functional to
reporting currency are taken to the Foreign Currency Translation
Reserve on the statement of financial position."
Consolidated Statement of Comprehensive Income
Year ended 31 December 2022 and period ended 31 December
2021
2022 2021
Note US$000 US$000
Continuing Operations
Administrative expenses 2 (5,830) (2,267)
Other Income 62 -
Investment grant 170 24
--------- ---------
Operating loss (5,598) (2,243)
Finance income 2 -
Finance costs (2) -
--------- ---------
Loss before tax (5,598) (2,243)
Total income tax (charge)/credit - -
Loss for the year from continuing operations (5,598) (2,243)
========= =========
Share of loss attributable to non-controlling
interest 119 -
Loss for the year attributable to equity
holders (5,479) (2,243)
========= =========
Other comprehensive income, net of tax
Items that may be reclassified subsequently
to profit or loss
Exchange differences on translation of
foreign operations (387) 56
Total comprehensive loss for the year
attributable
--------- ---------
to the equity holders of the parent (5,866) (2,187)
========= =========
Loss per share US cents US cents
Basic loss per share from continuing operations 3 (16.80) (8.96)
========= =========
Diluted loss per share from continuing
operations (16.80) (8.96)
========= =========
Consolidated Statement of Financial Position
As at 31 December 2022 and 2021
2022 2021
ASSETS US$000 US$000
Non-current assets
Goodwill 6 6
Property, plant and equipment 939 45
945 51
-------- --------
Current assets
Trade and other receivables 2,223 6,355
Cash and cash equivalents 3,452 1,865
5,675 8,220
-------- --------
TOTAL ASSETS 6,620 8,271
======== ========
LIABILITIES
Current liabilities
Trade and other payables 1,649 1,198
Short term facility - 1,415
1,649 2,613
-------- --------
Non-current liabilities
Non-current portion of leases - 22
- 22
-------- --------
TOTAL LIABILITIES 1,649 2,635
======== ========
EQUITY
Share capital 96 87
Share premium 11,901 7,653
Retained loss (7,722) (2,243)
Translation reserve (331) 56
Share option reserve 1,146 83
-------- --------
5,090 5,636
Non-controlling interest (119) -
TOTAL EQUITY 4,971 5,636
-------- --------
TOTAL EQUITY AND LIABILITIES 6,620 8,271
======== ========
Consolidated Statement of Changes in Equity
Year ended 31 December 2022 and period ended 31 December
2021
Share Profit Non-
capital and
& loss Other controlling Total
premium account Reserves Total Interest Equity
US$000 US$000 US$000 US$000 US$000 US$000
Balance at 6 January
2021 - - - - - -
Share-based payments - - 83 83 - 83
Shares issued on
reorganisation 67 67 67
Offer of shares to
public 8,071 - - 8,071 - 8,071
Costs of issue new
shares (398) - - (398) - (398)
Transactions with
the owners 7,740 - 83 7,823 - 7,823
-------- -------- --------- -------- ------------ --------
Loss for the period - (2,243) - (2,243) (2,243)
Translation reserve - - 56 56 56
Total comprehensive
loss for the year - (2,243) 56 (2,187) - (2,187)
-------- -------- --------- -------- ------------ --------
Balance at 31 December
2021 7,740 (2,243) 139 5,636 - 5,636
======== ======== ========= ======== ============ ========
Share-based payments - - 1,063 1,063 - 1,063
Offer of shares to
public 4,394 - - 4,394 - 4,394
Costs of issue new
shares (137) - - (137) - (137)
Transactions with
the owners 4,257 - 1,063 5,320 - 5,320
-------- -------- --------- -------- ------------ --------
Loss for the year - (5,479) - (5,479) (119) (5,598)
Translation reserve - - (387) (387) - (387)
Total comprehensive
loss for the year - (5,479) (387) (5,866) (119) (5,985)
-------- -------- --------- -------- ------------ --------
Balance at 31 December
2022 11,997 (7,722) 815 5,090 (119) 4,971
======== ======== ========= ======== ============ ========
Consolidated Statement of Cash Flows
Year ended 31 December 2022 and period ended 31 December
2021
2022 2021
US$000 US$000
Cash flows from operating activities
Cash (used in) / generated by operating activities
(Note 4) (6,152) 24
(6,152) 24
-------- --------
Cash flows from investing activities
Expenditure on development and production
assets - -
Acquisition Paraguay - (3)
Acquisition Iceland - (3)
- (6)
-------- --------
Cash flows from financing activities
Proceeds from issue of shares (net of expenses) 7,965 1,849
Repayment of obligations under leases (26) (2)
7,939 1,847
-------- --------
Net increase in cash and cash equivalents 1,787 1,865
Opening cash and cash equivalents at beginning
of period 1,865 -
Exchange gains/(losses) on cash and cash
equivalents (200) -
Closing cash and cash equivalents 3,452 1,865
======== ========
Notes
1. Accounting policies and preparation
The financial information set out in this announcement does not
constitute the Company's statutory financial statements and is
derived from the consolidated financial statements for the year
ended 31 December 2022 and period ended 31 December 2021.
Financial statements for the year ended 31 December 2022 and
period ended 31 December 2021 will be delivered in due course. The
auditors have reported on those accounts; their report was (i)
unqualified, (ii) did not include a reference to matters to which
the auditors drew attention by way of emphasis except for potential
material uncertainty that may arise in the event if, despite the
Directors' stated confidence, the Company is unable to achieve
project finance by December 2024, around the Company's ability to
continue as a going concern, and (iii) did not contain a statement
under section 498 (2) or (3) of the Companies Act 2006 in respect
of the accounts for 2022 and 2021.
The Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future. Therefore, they continue to adopt the going
concern basis in preparing the financial statements for the year
ended 31 December 2022 and period ended 31 December 2021.
Whilst the consolidated financial statements from which this
preliminary announcement has been derived are prepared in
accordance with International Financial Reporting Standards
("IFRS") and applicable law, this announcement does not itself
contain sufficient information to comply with IFRS. The Annual
Report, containing consolidated financial statements that comply
with IFRS, will be sent out to shareholders by 30 June 2023.
2 Administrative expenses
2022 2021
US$000 US$000
Directors and staff costs (including non-executive
Directors) 2,946 167
Expenditure by Atome Limited under President
Energy - 1,249
Cost of issue for existing shares 164 679
Share-based payments 1,063 83
Depreciation 24 2
Other 1,633 87
5,830 2,267
======= =======
2022 2021
Expenditure by Atome Limited under President
Energy US$000 US$000
Director fees - 737
Legal fees - 55
Consultancy - 248
Finance and other administration - 209
- 1,249
========= =======
3 Loss per share 2022 2021
US$000 US$000
Loss for the period attributable to
the equity holders of the Parent Company (5,479) (2,243)
========= =========
Number Number
'000 '000
Weighted average number of shares in issue 32,606 25,021
========= =========
US cents US cents
Loss per share
Loss per share from continuing operations (16.80) (8.96)
========= =========
Diluted Loss per share from continuing operations (16.80) (8.96)
========= =========
At 31 December 2022, 2,129,000 (2021: 2,091,500) share options
and share warrant awards were in issue that, if exercised, would
dilute earnings per share in the future. No dilution per share was
calculated as with the reported loss adding share options and
warrants is anti-dilutive.
4 Notes to the consolidated statement
cash flows
2022 2021
US$000 US$000
Loss from operations before taxation (5,598) (2,243)
Interest on bank deposits 2 -
Depreciation of property, plant and equipment 24 2
Foreign exchange difference (203)
Share-based payments 1,063 83
-------- --------
Operating cash flows before movements
in working capital (4,712) (2,158)
Decrease / (increase) in receivables (394) (199)
Increase / (decrease) in short term facility (1,415) 1,415
Increase / (decrease) in payables 369 966
Net cash (used in) / generated by operating
activities (6,152) 24
======== ========
5 Segment reporting
In the opinion of the Directors, the operations of ATOME Energy
PLC comprise one class of business, the development, production and
the sale of green fuel energy and related activities.
An operating segment is a component of an entity that engages in
business activities from which it may earn revenues and incur
expenses and whose results are regularly reviewed by the Board of
Directors.
The Board of Directors reviews operating results by reference to
the core principle of geographic location. The Group currently has
projects in two geographical markets: the Paraguay and Iceland. It
has a head office and associated corporate expenses in the UK.
Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Administrative expenses 614 299 4,917 5,830
Other Income (62) (62)
Investment grant (170) - - (170)
Segment costs 444 299 4,855 5,598
-------- --------- -------- --------
Segment operating profit/(loss)
for the year ended 31 December
2022 (444) (299) (4,855) (5,598)
======== ========= ======== ========
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Administrative expenses 20 8 2,239 2,267
Investment grant (24) - - (24)
Segment costs (4) 8 2,239 2,243
-------- --------- -------- --------
Segment operating profit/(loss)
for the period ended 31 December
2021 4 (8) (2,239) (2,243)
======== ========= ======== ========
Segment assets Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Goodwill 3 3 - 6
Property, plant and equipment - 939 - 939
-------- --------- ------- -------
3 942 - 945
Other assets - 44 2,179 2,223
-------
Total assets as at 31 December
2022 3 986 2,179 3,168
======== ========= ======= =======
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Goodwill 3 3 - 6
Property, plant and equipment - 45 - 45
-------- --------- ------- -------
3 48 - 51
Other assets 3 3 6,349 6,355
-------
Total assets as at 31 December
2021 6 51 6,349 6,406
======== ========= ======= =======
Segment liabilities Iceland Paraguay UK Total
2022 2022 2022 2022
US$000 US$000 US$000 US$000
Total liabilities as at 31
December 2022 51 866 732 1,649
======== ========= ======= =======
Iceland Paraguay UK Total
2021 2021 2021 2021
US$000 US$000 US$000 US$000
Total liabilities as at 31
December 2021 5 52 2,578 2,635
======== ========= ======= =======
Reconciliation of the amounts reported for segment assets to the
Group's consolidated statement of financial position is as
follows:
2022 2021
US$000 US$000
Segment assets 3,168 6,406
Group cash 3,452 1,865
Group assets as at 31 December 6,620 8,271
======= =======
-ends-
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