TIDMATOM
RNS Number : 9150N
ATOME Energy PLC
28 September 2023
28 September 2023
ATOME ENERGY PLC
("ATOME", "the Company", or "the Group")
Unaudited Results for the Six Months Ended 30 June 2023
Current Trading Update
ATOME Energy (AIM: ATOM), the only international green hydrogen,
ammonia and fertiliser project development company on the London
Stock Exchange, with large-scale projects of over 600MW in South
America and Europe concentrating on energy and food security,
together with hydrogen mobility projects, is pleased to announce
its unaudited results for the six-month period ended 30 June 2023
which are set out below together with a current trading update.
H1 2023 Highlights:
- ATOME recorded a loss for the six months ended 30 June 2023 of
US$2.9 million (US$ 2.5 million for six months ended 30 June 2022
and US$5.6 million year ended 31 December 2022), with US$2.1
million of costs capitalised in relation to Villeta project FEED
studies, as these activities are directly related to design and
construction of the project currently proceeding on a fast track to
EPC contract and a Final Investment Decision ("FID") in Q4
2023.
- In January 2023, ATOME signed a mandate with IDB Invest, the
private-sector arm of the multilateral Inter-American Development
Bank, which has agreed to provide certain grant funding towards the
costs of the Environmental and Social Impact Assessment ("ESIA"),
with the ESIA being a key step towards project development and
positively contributing towards decision making by all funders
before FID.
- In May 2023, the Company completed a successful placing of
shares to Baker Hughes and other institutional shareholders
totalling US$4.6 million and announced the extension of its Villeta
project to production of green fertiliser, aiming to serve the
significant and growing agricultural market in South America and
worldwide.
- In July 2023, ATOME increased its 120-megawatt ("MW") power
purchase agreement ("PPA") at Phase I Villeta Project to 145MW and
entered a 300MW pre-PPA agreement for Phase II Yguazu Project with
commencement of necessary studies, increasing total committed power
supply in Paraguay to 445MW. ATOME also obtained an approval in
relation to its application for tax-free zone status at Villeta
Project conditional on completion of environmental studies.
- Since announcing its move to green fertiliser production,
ATOME has received multiple written expressions of interest from
leading international players for the whole of the offtake of Phase
I production, which aims to potentially displace up to 500,000 tons
of CO2eq per year.
- Investment Memorandum for Villeta project in Paraguay was
circulated to selected potential project-level equity and debt
investors in August 2023 and an FID for Phase I Villeta is
currently expected in Q4 2023.
Current Trading Update
ATOME continues to make progress on its projects, with Paraguay
in particular running ahead of the expected goals set by the
Directors.
The Company has developed into a world leading green fertiliser
project development company benefiting from the unique position of
Paraguay having an excess of competitively priced available
baseload low-cost plug and play green electricity from the grid and
being located at the centre of the South American agricultural
market, which is the largest fertiliser import market in the
world.
Phase 1 of Villeta is on track to achieve FID by the end of
2023, with construction activities commencing immediately
thereafter and a significantly expanded green fertiliser project
coming on stream by the end of 2025.
During the first six months of 2023 and to the date of this
report, ATOME has been able to achieve further significant progress
in developing its projects, as well as creating a joint venture
with its partners in Costa Rica through National Ammonia
Corporation ("NAC").
The Company views the future with increasing confidence as it
focuses on maintaining the momentum shown since IPO and continues
to seek to expand the current portfolio of interests.
Statement by Peter Levine, Chairman and Olivier Mussat, CEO
ATOME's results for the six months ended 30 June 2023 reflect
commendable progress for the Company.
The Villeta project alone will be the largest green fertiliser
production facility in the world when it comes on stream at the end
of 2025 and has the capability of serving domestic and South
American as well as European and Asian markets, benefiting from
soon to be granted Tax Free Zone status. The Second Phase, code
named Iguazu with power already reserved, is nearly triple the size
and capacity of Villeta and could be completed within 24 months of
Viletta project commissioning.
The FEED packages for Villeta are nearing completion and
negotiations for awarding the EPC contract are at an advanced
stage, working with the internationally renowned engineers Aecom as
our Owner's Engineer.
The finance process for Villeta has been launched by our
advisers Natixis, with the multi-lateral IDB Invest mandate already
signed, which has already generated significant positive interest
both on a debt and equity level internationally as well as locally.
In-country visits and face-to-face presentations have already
commenced.
As sustainability and climate concerns are now impacting the
food and agricultural sectors, with carbon tariffs on fertiliser
imports being implemented in the EU from 2026, we have expanded our
move into Central America with our joint venture vehicle NAC, in
Costa Rica where we have a very prospective 100MW project. This is
almost a cut and paste of Villeta in a country which has 98%
renewable power. At the same time, we have increased our own
management expertise including the appointment of Terje Bakken
formerly of Yara and Eurochem as Commercial Head. Iceland remains
in our portfolio as one for the future.
This second half of the year is an exciting time for our project
progression, and we look forward to delivering further positive
news as we progress towards FID on our first project. We view the
outlook for ATOME with significant confidence.
The 2023 Half Year Report and Financial Statements will be made
available at https://www.atomeplc.com/
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
Cavendish Capital Markets Limited
(Broker)
Simon Hicks, George Dollemore +44 (0) 20 7220 0500
Tavistock (Financial PR and IR) +44 (0) 20 7920 3150
Simon Hudson, Rebecca Hislaire, Charles atome@tavistock.co.uk
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 600-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 145MW 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 Banking and
the multilateral IDB Invest to lead the project funding and with
Front End Engineering and Design studies 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 produce
green ammonia at an industrial scale using 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 since May 2023, Baker Hughes, a global
energy technology company operating in the energy and industry
sectors.
Financial Review to 30 June 2023
The condensed financial statements present the half-year results
for the six months ended 30 June 2023 for ATOME Energy PLC, a green
hydrogen, ammonia and fertiliser project development company on the
London Stock Exchange, with large-scale projects of over 600MW in
South America and Europe concentrating on energy and food security,
together with hydrogen mobility projects.
Operating loss attributable to the Group's equity holders was in
line with expectations and totalled US$ 2.9 million (US$2.5 million
for the six months ended 30 June 2022). As Villeta project has
advanced with front end engineering and design (FEED), costs
incurred on the FEED contract and other directly attributable costs
totalling US$2.1 million were capitalised in the six months ended
30 June 2023.
Net cash used by operating activities totalled US$3.3 million
(US$3.7 million for the six months ended 30 June 2022 and US$6.2
million for the year ended 31 December 2022, respectively), with
cash used by investing activities totalling US$2.1 million.
Operating deficit and investing activities cash outflows were
financed primarily by the receipt of net proceeds received from the
issue of shares in the placing totalling US$4.6 million (US$3.7
million in six months ended 30 June 2022 and US$7.9 million in the
year ended 31 December 2022).
Additional financial support is available to the Group in the
form of an Unconditional Standby Equity Facility Agreement whereby
Peter Levine, Chairman and one of his investment vehicles, PLLG
Investments Limited, have agreed to subscribe for shares at the
placing price of 80p per share at the call option of the Company at
no cost and at any time during the period to end June 2024. This
provides an additional GBP3.0 million facility to the Group should
it so require after considering other forms of financing
available.
The results of the Group are presented in US Dollars as all its
budgeting, cost management and future trading is or will be
denominated in US Dollars. The foreign exchange gains and losses
arising from translation from the Group entities functional
currency to US Dollars are taken to the Translation reserve on the
statement of financial position.
6 months 6 months Period
to
to 30 to 30 31 Dec
June June
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Income from grants 6 31 170
Other Income - - 62
Loss before tax (2,856) (2,501) (5,598)
Net cash from operating activities (3,257) (3,710) (6,152)
Net cash from investing activities (2,070) (14) -
Proceeds from issue of shares (net
of expenses) 4,583 3,689 7,965
Net cash/(debt) 2,838 1,633 3,452
Cash balance 3,634 1,633 3,452
Condensed Consolidated Statement of Comprehensive Income
6 months 6 months Period
to
to 30 to 30 31-Dec
June June
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
Note US$000 US$000 US$000
Administrative expenses 3 (2,870) (2,531) (5,830)
Other Income - - 62
Investment grant 6 31 170
------------ ------------ ----------
Operating loss (2,864) (2,500) (5,598)
Finance Income 22 - 2
Finance costs (37) (1) (2)
Foreign exchange gain (loss) 23 - -
Loss before taxation (2,856) (2,501) (5,598)
Income tax (charge)/credit
Current tax income tax (charge)/credit - - -
Deferred tax being a provision - - -
for future taxes
Total income tax (charge)/credit - - -
Loss for the period from continuing
operations (2,856) (2,501) (5,598)
Non-controlling interest share
of the comprehensive loss 42 66 119
Loss attributable to the equity
holders (2,814) (2,435) (5,479)
Other comprehensive income (loss)
Items that may be reclassified
subsequently to profit or loss 256 (413) (387)
Total comprehensive profit/(loss)
for the period
attributable to the equity holders
of the Parent Company (2,558) (2,848) (11,345)
============ ============ ==========
Earnings/ (loss) per share from US cents US cents US cents
continuing operations
Basic earnings/ (loss) per share 4 (7.71) (7.70) (16.80)
Diluted earnings / (loss) per share 4 (7.71) (7.70) (16.80)
Condensed Consolidated Statement of Financial Position
30-Jun 30-Jun 31-Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Note
ASSETS
Non-current assets
Goodwill 6 7 6
Property, plant and equipment 5 3,059 46 939
------------ ------------ ----------
3,065 53 945
Current assets
Trade and other receivables 6 2,842 1,915 2,223
Cash and cash equivalents 3,634 1,633 3,452
6,476 3,548 5,675
------------ ------------ ----------
TOTAL ASSETS 9,541 3,601 6,620
============ ============ ==========
LIABILITIES
Current liabilities
Trade and other payables 7 1,197 296 1,649
Short-term facility - - -
1,197 296 1,649
============ ============ ==========
Non-current liabilities
Long Term Debt 796
Trade and other payables 7 - 10 -
796 10 -
============ ============ ==========
TOTAL LIABILITIES 1,993 306 1,649
============ ============ ==========
EQUITY
Share capital 106 87 96
Share premium 16,786 7,653 11,901
Translation reserve (75) (369) (331)
Profit and loss account (10,536) (4,666) (7,722)
Share base payment reserve 1,428 656 1,146
Equity attributable to
owners of the parent 7,709 3,361 5,090
Non-controlling interest (161) (66) (119)
TOTAL EQUITY 7,548 3,295 4,971
============ ============ ==========
TOTAL EQUITY AND LIABILITIES 9,541 3,601 6,620
============ ============ ==========
Condensed Consolidated Statement of Changes in Equity
Share Profit Other Total Non-controlling Total
capital & loss Reserves interest
and account
premium
US$000 US$000 US$000 US$000 US$000 US$000
Balance as at 1 January
2022 7,740 (2,243) 139 5,636 - 5,636
Share-based payments - - 573 573 - 573
Transactions with owners - - 573 573 - 573
Loss for the period - (2,501) - (2,501) - (2,501)
Non-controlling interest share in
comprehensive loss 66 - 66 (66) -
Exchange differences on
translation 12 (425) (413) - (413)
Total comprehensive loss - (2,423) (425) (2,848) (66) (2,914)
Balance as at 30 June 2022 7,740 (4,666) 287 3,361 (66) 3,295
========= ========= ========== ========= ================ =========
Share-based payments - - 490 490 - 490
Offer of shares to public 4,394 - - 4,394 - 4,394
Costs of issue new shares (137) - - (137) - (137)
Transactions with owners 11,997 (4,666) 777 8,108 (66) 8,042
Loss for the period - (3,109) - (3,109) - (3,109)
Non-controlling interest share in
comprehensive loss 53 53 (53) -
Exchange differences on
translation - 38 38 38
Total comprehensive
income/(loss) - (3,056) 38 (3,018) (53) (3,071)
Balance as at 1 January
2023 11,997 (7,722) 815 5,090 (119) 4,971
Share-based payments - - 282 282 - 282
Offer of shares to public 5,086 - - 5,086 - 5,086
Costs of issue new shares (191) - - (191) - (191)
Transactions with owners 4,895 - 282 5,177 - 5,177
Loss for the period - (2,856) - (2,856) - (2,856)
Non-controlling interest share in
comprehensive loss 42 - 42 (42) -
Exchange differences on
translation - 256 256 - 256
Total comprehensive income/(loss) - (2,814) 256 (2,558) (42) (2,600)
Balance as at 30 June 2023 16,892 (10,536) 1,353 7,709 (161) 7,548
========= ========= ========== ========= ================ =========
Condensed Consolidated Statement of Cash Flows
Six months ended 30 June 2023
6 months 6 months Period
to
to 30 to 30 31-Dec
June June
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Cash flows from operating activities
- (Note 8)
Cash generated/(consumed) by operations (3,257) (3,710) (6,152)
(3,257) (3,710) (6,152)
------------ ------------ ----------
Cash flows from investing activities
Additions to property plant and equipment (2,070) (14) -
(2,070) (14) -
------------ ------------ ----------
Cash flows from financing activities
Proceeds from issue of shares (net
of expenses) 4,583 3,689 7,965
Loan drawdown 796 - -
Repayment of borrowings - - -
Repayment of obligations under leases (13) (12) (26)
5,366 3,677 7,939
------------ ------------ ----------
Net increase/(decrease) in cash and
cash equivalents (39) (47) 1,787
Opening cash and cash equivalents
at beginning of year 3,452 1,865 1,865
Exchange (losses)/gains on cash and
cash equivalents (143) (185) (200)
Closing cash and cash equivalents 3,634 1,633 3,452
------------ ------------ ----------
Notes to the Financial Statements
Six months ended 30 June 2023
1. Nature of operations and general information
ATOME Energy PLC (the Company) is a public company limited by
shares and incorporated in England in the United Kingdom under the
Companies Act 2006. The address of the Company's registered office
is Carrwood Park, Selby Road, Leeds, LS15 4LG. The Company's and
its subsidiaries' (the Group) operations and principal activities
include planning, development and execution of the projects to
produce green hydrogen, ammonia and fertiliser using renewable
energy. The Company is quoted on the AIM market of the London Stock
Exchange (ticker: ATOM), and is headquartered in Leeds, UK, with
offices in Asunción, Paraguay and Akureyri, Iceland.
These condensed consolidated interim financial statements (the
interim financial statements) have been approved for issue by the
Board of Directors on 22 September 2023. The financial information
for the year ended 31 December 2022 set out in this interim report
does not constitute statutory accounts as defined in Section 434 of
the Companies Act 2006. The financial information for the six
months ended 30 June 2023 and 30 June 2022 was neither audited nor
reviewed by the auditor. The Group's audited statutory financial
statements for the year ended 31 December 2022 have been filed with
the Registrar of Companies. The auditor's report on those financial
statements was unqualified, 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 did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
2. Basis of preparation
The interim financial statements do not include all the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2022, which
have been prepared in accordance with UK adopted International
Accounting Standards.
These financial statements have been prepared under the
historical cost convention, except for any derivative financial
instruments which have been measured at fair value. The accounting
policies adopted in the 2023 interim financial statements are the
same as those adopted in the financial statements for the year
ended 31 December 2022, as included in the 2022 Annual report.
6 months 6 months Period
to
to 30 to 30 31 Dec
June June
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
3 Administrative expenses
Directors' fees and
related costs (including
non-executive Directors) 833 717 2,036
Staff costs 576 143 910
Cost of issue for
existing shares - - 164
Share-based payments - 573 1,063
Depreciation - 12 24
Other 1,461 1,086 1,633
2,870 2,531 5,830
============ ============ ==========
4 Earnings / (loss) per share
Net profit / (loss) for the period
attributable
to the equity holders of the
Parent Company (2,856) (2,501) (5,598)
========= ========= =========
Number Number Number
'000 '000 '000
Weighted average number
of shares in issue 37,019 32,500 32,606
========= ========= =========
Earnings /(loss) per share US cents US cents US cents
Basic (7.71) (7.70) (16.80)
Diluted (7.71) (7.70) (16.80)
========= ========= =========
5 Property, plant and equipment
Land Leased Asset Total
Assets Assets Under
Construction
US$000 US$000 US$000 US$000
Cost
At 1 January 2022 - 47 47
Additions - - -
At 30 June 2022 - 47 - 47
Additions 918 - 918
At 1 January 2023 918 47 - 47
Additions - - 2,132 2,132
At 30 June 2023 918 47 2,132 3,097
======= ======= ============== =======
Depreciation/Impairment
At 1 January 2022 - 2 2
Charge for the period - 12 12
At 30 June 2022 - 14 - 14
Charge for the period - 12 12
At 1 January 2023 - 26 - 26
Charge for the period 12 12
At 30 June 2023 - 38 - 38
======= ======= ============== =======
Net Book Value 30 June
2023 918 9 2,132 3,059
======= ======= ============== =======
Net Book Value 30 June
2022 - 33 - 33
======= ======= ============== =======
Net Book Value 31 December
2022 918 21 - 939
======= ======= ============== =======
6 months 6 months Period
to
to 30 to 30 31 Dec
June June
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
6 Trade and other receivables
Outstanding on share
issue 2,037 1,279 1,601
Prepayments 421 553 268
Other receivables 384 83 354
2,842 1,915 2,223
============== ============ ==========
7 Trade and other payables
Current
Other payables 1,187 272 1,543
Costs of issue for new and existing
shares outstanding - - 84
Current portion of
leases 10 24 22
-------------- ------------ ----------
1,197 296 1,649
-------------- ------------ ----------
Non-current
Long Term Debt 796 - -
Non-current portion - 10 -
of leases
-------------- ------------ ----------
796 10 -
-------------- ------------ ----------
Total carrying value 1,993 306 1,649
============== ============ ==========
8. Reconciliation of operating
profit to net cash outflow from
operating activities
6 months 6 months Period
to
to 30 June to 30 June 31 Dec
2023 2022 2022
(Unaudited) (Unaudited) (Audited)
US$000 US$000 US$000
Profit/(loss) from operations
before taxation (2,857) (2,501) (5,598)
Interest on Bank Deposits 2
Depreciation and impairment
of property,
plant and equipment 12 12 24
Interest accretion on lease
liability 1 1 -
Placing costs expensed 191 - -
Share-based payments 282 573 1,063
Operating cash flows before
movements in working capital (2,371) (1,915) (4,509)
(Increase)/decrease in receivables (439) (409) (394)
Increase/(decrease) in short-term
facility - (1,412) (1,415)
(Decrease)/increase in payables (447) 14 369
Foreign exchange loss/(gain) - 12 (203)
Net cash generated by/(used
in)
operating activities (3,257) (3,710) (6,152)
============ ============ ==========
9. Capital commitments
The Group's outstanding capital commitments in relation to its
projects totalled US$5.3 million as at 30 June 2023 and as at the
date of this report, with US$2.8 million due within the next 12
months.
-ends-
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR NKOBBDBKBFCB
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
Atome (LSE:ATOM)
Historical Stock Chart
From Apr 2024 to May 2024
Atome (LSE:ATOM)
Historical Stock Chart
From May 2023 to May 2024
