Half-year Report

RNS Number : 5363A

ATOME Energy PLC

26 September 2022

 

26 September 2022

ATOME ENERGY PLC

("ATOME", "the Company", or "the Group")

Unaudited Half Year Results for the Six Months Ended 30 June 2022

Current Trading Update

ATOME Energy (AIM: ATOM), the only pure international green hydrogen and ammonia production company on the London Stock Exchange, with large-scale projects of over 500MW 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 2022 which are set out below together with a current trading update.

H1 2022 Highlights:

· Operating loss in period US$2.5 million in line with expectations with costs of projects to be capitalised only after they reach final investment decision stage, f inanced from available funds from flotation

· Since listing on AIM on 30 December 2021, ATOME Energy Group (ATOME or the "Group) in less than 9 months has achieved the following key milestones on its roadmap to developing its projects:

· Signed a long-term 60MW industrial scale Power Purchase Agreement securing baseload 24/7 electricity supply for the Group's Phase 1 Villeta project in Paraguay in addition to the now enlarged 300MW Paraguay project referred to at the time of flotation the latter of which is progressing positively with concrete discussions taking place with relevant authorities and stakeholders

· Appointed the Multinational Engineering Consultancy, AECOM, a US Fortune 500 Company, as the Owner's Engineer for its current Paraguay projects

· Purchased a 75-acre site for the Phase 1 facility in Villeta adjacent to both the newly built Villeta sub-station and near our customers with the benefit of navigable river access for export

· Appointed a local experienced FEED contractor for the electromechanical work at the Villeta sub-station with environmental, water, soil and groundwork studies in hand

· Tender in progress with qualified reputable international contractors for the full project FEED contract for Villeta project - results of tender expected in next 4 weeks, FID targeted by end Q1 2023 with construction commencement projected mid 2023

· Appointed Natixis Corporate Investment Bank, one of the global leaders in hydrogen and energy infrastructure funding, as ATOME's financial advisor to structure and secure financing for the Villeta project through to construction

· Commenced discussions with multi-lateral funding institutions with take-on KYC in process and significant interest being shown in our project in both industry and financial communities

· Entered into memoranda of understanding with the National Civil Aviation Authority of Paraguay and the Paraguay Barge Association regarding the potential use and benefit of hydrogen and ammonia

· Ordered a 1MW electrolyser unit and commenced site preparation work for ATOME Mobility Division in Paraguay in co-operation with the Concrete-Mix and Automotor Group, respectively owners of the largest cement facilities in Paraguay and the oldest Hyundai and Isuzu vehicle dealer in South America

· Notwithstanding the current well-known issues in the power sector in Europe the Iceland project continues step by step with discussions centred on the power suppliers and key stakeholders with Green Fuel ehf, ATOME's Icelandic subsidiary, having secured a grant for ISK 25,000,000 (approximately USD$175,000) from F.h. Orkusjóur, the government-led Energy Fund

· ATOME is furthermore increasingly active in developing future growth opportunities for the Company, including new projects and partnership opportunities in Latin America, the Mediterranean and Eastern Europe

Current Trading Update

ATOME continues to make progress on its projects with Paraguay in particular running ahead of expectation in accordance with the goals set by the Directors.

In the next 6 months, ATOME is targeting the following milestones for its projects:

· Extended Power Purchase Agreements in Paraguay

· Site clearance, preparation of land at Villeta with completion of relevant land, water, soil, social and environmental studies

· Start of physical electromechanical works in Villeta pursuant to the FEED currently in progress

· Appointment of main facility FEED contractor for Phase 1 Villeta with receipt of the study in Q1 2023

· Procurement and selection of the main equipment suppliers

· Appointment of EPC contractor with main sub-packages to be identified and to be tendered

· Final Investment Decision on Villeta Project

· With ATOME's financial adviser, complete the project funding package with significant interest already being shown on a project level from multi-laterals and green infrastructure funds

· Shortlisting long term offtakers for production from Villeta

· Ordering of fueller for its mobility division and bringing into Paraguay first vehicles

· Maturing power supply negotiations in Iceland to PPA stage

· The addition of new country entries expanding ATOME's footprint beyond the current geographic portfolio

Phase 1 of Villeta is on track to commence main site construction by mid-2023 with a view to commissioning of the facility by end 2024/first part 2025. The Group is also in advanced discussions with global off-takers for its hydrogen and ammonia, with good interest shown in all of ATOME's prospective Paraguay production.

The Group is on the ground in Iceland via its Green Fuel subsidiary, in detailed discussions with all the major power providers, and is receiving broad political support for Green Fuel's hydrogen and ammonia projects with Group also exploring potential international new markets for its next growth phase.

ATOME's new mobility division is progressing on track with its first 1MW electrolyser currently being built in the UK and scheduled for commissioning by the end of Q1 2023, with first revenues projected in that year.

We view the future with increasing confidence as we concentrate on maintaining the momentum shown since we came to the market together with seeking to expand our current portfolio of interests.

Peter Levine, Chairman and Olivier Mussat, CEO, jointly commented: "These maiden half year results as a publicly traded green hydrogen and ammonia production company demonstrate the underlying progress achieved by ATOME in the space of under 9 months.

"Since the start of the year we have added a significant industrial scale project in Villeta, Paraguay, to our portfolio of projects of now some 500MW in potential size, signing a landmark power purchase agreement giving us 24/7 baseload electricity at prices that allow us to compete on a worldwide stage, as well as creating a separate mobility division with electrolyser ordered with first revenue scheduled for 2023. At the same time our management roster and expertise has necessarily expanded whilst always keeping an eye on costs.

"We are at the forefront of our industry, delivering large scale projects realistically able to be brought into production on a fast-track, at a world leading low cost of production, thanks to the present availability of economical baseload 24/7 stable 100% renewable power, with existing infrastructure and near end customers making our project very attractive globally.

"Energy and food security is not only in clear focus in the turbulent present times but will be a priority for decades to come as it is recognised that energy transition is a necessity and not a luxury and is of pressing strategic need evidenced by world events as well as for the all-important environmental reasons. ATOME's business model and the demonstrable progress we are rapidly making puts us at the forefront of our industry as we are providing the solutions now to the key issues of our times of energy and food security.

"We view the future of ATOME with increasing confidence".

The 2022 Half Year Report and Financial Statements will be made available at https://www.atomeplc.com/

There will be an analyst call today at 0930h BST. Those analysts wishing to join the call should register to receive an invitation by contacting [e-mail]

There will also be a presentation for investors today at 1300h GMT on the Investor Meet Company platform.  Investors can sign up to Investor Meet Company for free and add to meet ATOME ENERGY PLC via: https://www.investormeetcompany.com/atome-energy-plc/register-investor

For more information, please visit https://www.atomeplc.com or contact:

ATOME Energy PLC Nikita Levine, Investor Relations	[phone] [e-mail]
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish	[phone]
Liberum (Joint Broker) Cameron Duncan, Kane Collings	[phone]
SP Angel (Joint Broker) Richard Hail, Caroline Rowe	[phone]
finnCap (Joint Broker) Christopher Raggett, Tim Harper	[phone]
Tavistock (Financial PR and IR) Simon Hudson, Rebecca Hislaire, Charles Baister	[phone] [e-mail]

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 focusing on green hydrogen and ammonia production with over 500-megawatt of projects in Paraguay and Europe and through this addressing the important questions of energy and food security.

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 world scale 60MW power purchase agreement with ANDE, the state energy company in Paraguay for production of green hydrogen and ammonia targeted to start operations at or around end 2024.

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. 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.

Financial Review to 30 June 2022

The condensed financial statements present the interim results for ATOME Energy for the first full six months of operations as an independent AIM-listed business focused on producing, marketing and distributing green hydrogen and ammonia.

Operating loss for the Group in line with expectations totalled US$2.5 million for the 6 months ended 30 June 2022. No costs incurred in relation to the Company's projects during this period have been capitalised. Costs incurred in relation to the projects will be capitalised once they reach final investment decision stage.

The comparative results for the six months ended 30 June 2021 and year ended 31 December 2021 relate to activity under control of President Energy PLC, with a total loss of US$0.6 million for the six months ended 30 June 2021 and a loss of U$2.2 million for the year ended 31 December 2021, including IPO costs.

Net cash used by operating activities totalled US$3.7 million for the 6 months ended 30 June 2022 (US$2,000 and US$24,000 received from operating activities for 6 months ended 30 June 2021 and year ended 31 December 2021, respectively).

The comparative amounts include receipt of short-term facility loans from President Energy PLC and FIIP a member of the Peter Levine group of investment companies, totalling US$0.6 million and US$1.4 million in the 6 months ended 30 June 2021 and year ended 31 December 2021, respectively, fully repaid, and included in the net cash used in operating activities for 6 months ended 30 June 2022.

Operating deficit generated in the six months ended 30 June 2022 was financed primarily by the receipt of net proceeds received from issue of shares at Admission totalling US$3.7 million in six months ended 30 June 2022 (US$0.001 million in six months ended 30 June 2021 and US$1.8 million in the year ended 31 December 2021).

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 2023. This provides an additional £3.0 million facility available 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		Year to
	to 30 June		to 30 June		31 Dec
	2022		2021		2021
	(Unaudited)		(Unaudited)		(Audited)
	US$000		US$000		US$000
Income from grants	31		-		24
Loss before tax	(2,501)		(591)		(2,243)
Net cash (used by)/received from operating activities	(3,710)		2		24
Proceeds from issue of shares (net of expenses)	3,689		1		1,849
Net cash/(debt)	1,633		(582)		450
Cash balance	1,633		-		1,865

Condensed Consolidated Statement of Comprehensive Income

		6 months		6 months		Year to
		to 30 June		to 30 June		31 December
		2022		2021		2021
		(Unaudited)		(Unaudited)		(Audited)
	Note	US$000		US$000		US$000
Administrative expenses	3	(2,531)		(591)		(2,267)
Investment grant		31		-		24
Operating loss		(2,500)		(591)		(2,243)
Finance costs		(1)		-		-
Profit / (loss) before tax		(2,501)		(591)		(2,243)
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		(2,501)		(591)		(2,243)
Other comprehensive income
- Items that may be reclassified subsequently
to profit or loss		(413)		-		56
Non-controlling interest share of the comprehensive loss		66		-		-
Total comprehensive loss for the period		-		-		-
attributable to the equity holders of the Parent Company		(2,848)		(591)		(2,187)
Loss per share from continuing operations		US cents		US'000		US cents
Basic loss per share	4	(7.70)		(1.20)		(8.96)
Diluted loss per share	4	(7.70)		(1.20)		(8.96)

Condensed Consolidated Statement of Financial Position

		30 June		30 June		31 December
		2022		2021		2021
		(Unaudited)		(Unaudited)		(Audited)
	Note	US$000		US$000		US$000
ASSETS
Non-current assets
Goodwill		6		3		6
Property, plant and equipment	5	47		-		45
		53		3		51
Current assets
Trade and other receivables	6	1,915		-		6,355
Cash and cash equivalents		1,633		-		1,865
		3,548		-		8,220
TOTAL ASSETS		3,601		3		8,271
LIABILITIES
Current liabilities
Trade and other payables	7	296		11		1,198
Short-term facility	8	-		581		1,415
		296		592		2,613
Non-current liabilities
Trade and other payables	7	10		-		22
		10		-		22
TOTAL LIABILITIES		306		592		2,635
EQUITY
Share capital		87		1		87
Share premium		7,653		-		7,653
Translation reserve		(369)		-		56
Profit and loss account		(4,666)		(591)		(2,243)
Share base payment reserve		656		-		83
Equity attributable to owners of the parent		3,361		(590)		5,636
Non-controlling interest		(66)		-		-
TOTAL EQUITY		3,295		(590)		5,636
TOTAL EQUITY AND LIABILITIES		3,601		3		8,271

Condensed Consolidated Statement of Changes in Equity

		Share capital and premium		Retained earnings		Share based payment reserve		Translation reserve		Equity attributable to owners of the parent		Non-controlling interest		Total equity
		US$000		US$000		US$000		US$000		US$000		US$000		US$000
Balance as at 6 January 2021		-		-		-		-		-		-		-
Shares issued on company formation		1		-		-		-		1				1
Transactions with owners		1		-		-		1		2		-		1
Loss for the period				(591)						(591)
Exchange differences on
translation		-		-		-		-		-		-		-
Total comprehensive loss		1		(591)		-		1		(589)		-		(589)
Balance as at 30 June 2021		1		(591)		-		1		(589)		-		(589)
Share-based payments		-		-		83		-		83		-		83
Shares issued on reorganisation		86				-		-		86				86
Offer of shares to public		7,653		-		-		-		7,653		-		7,653
Costs of issue new shares				-		-		-		-		-		-
Transactions with owners		7,740		(591)		83		1		7,233		-		7,233
Loss for the period		-		(1,652)		-		-		(1,652)		-		(1,652)
Exchange differences on translation		-				-		55		55				55
Total comprehensive income/(loss)		-		(1,652)		-		55		(1,597)		-		(1,597)
Balance as at 1 January 2022		7,740		(2,243)		83		56		5,636		-		5,636
Share-based payments		-		-		573		-		573		-		573
Subscriptions		-		-		-		-		-		-		-
Issued in settlement		-		-		-		-		-		-		-
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
income/(loss)		-		(2,423)		-		(425)		(2,848)		(66)		(2,914)
Balance as at 30 June 2022		7,740		(4,666)		656		(369)		3,361		(66)		3,295

Condensed Consolidated Statement of Cash Flows

Six months ended 30 June 2022

		6 months	6 months	Year to
		to 30 June	to 30 June	31 December
		2022	2021	2021
		(Unaudited)	(Unaudited)	(Audited)
		US$000	US$000	US$000
Cash flows from operating activities - (Note 9)
Cash generated/(consumed) by operations		(3,710)	2	24
		(3,710)	2	24
Cash flows from investing activities
Acquisition Paraguay		-	(3)	-
Acquisition Iceland		-	-	(3)
Additions to property plant and equipment		(14)	-	(3)
		(14)	(3)	(6)
Cash flows from financing activities
Proceeds from issue of shares (net of expenses)		3,689	1	1,849
Repayment of obligations under leases		(12)	-	(2)
		3,677	1	1,847
Net increase/(decrease) in cash and cash equivalents		(47)	-
Opening cash and cash equivalents at beginning of year		1,865	-	1,865
Exchange (losses)/gains on cash and cash equivalents		(185)	-	-
Closing cash and cash equivalents		1,633	-	1,865

Notes to the Financial Statements

Six months ended 30 June 2022

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 hydrogen and green ammonia 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 20 September 2022. The financial information for the year ended 31 December 2021 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 2022 and 30 June 2022 was neither audited nor reviewed by the auditor. The Group's statutory financial statements for the year ended 31 December 2021 have been filed with the Registrar of Companies. The auditor's report on those financial statements was unqualified, did not draw attention to any matters by way of emphasis 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 2021, 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 2022 interim financial statements are the same as those adopted in the financial statements for the year ended 31 December 2021, as included in the 2021 Annual report.

			6 months		6 months		Period to
			to 30 June		to 30 June		31 December
			2022		2021		2021
			(Unaudited)		(Unaudited)		(Audited)
			US$000		US$000		US$000
3. Administrative expenses
Directors remuneration and related costs (including non-executive Directors)			717		-		167
Staff costs			332		-		-
Expenditure by ATOME Limited under President Energy			-		591		1,249
Cost of issue for existing shares			-		-		679
Share-based payments			573		-		83
Depreciation			12		-		2
Other			897		-		87
			2,531		591		2,267
Expenditure by ATOME Limited under President Energy
Director fees			-		358		737
Legal fees			-		5		55
Consultancy			-		101		248
Finance and other administration			-		127		209
			-		591		1,249

			6 months			6 months		Period to
			to 30 June			to 30 June		31 December
			2022			2021		2021
			(Unaudited)			(Unaudited)		(Audited)
			US$000			US$000		US$000
4. Earnings / (loss) per share
Net profit / (loss) for the period attributable
to the equity holders of the
Parent Company				(2,501)		(591)		(2,243)
				Number		Number		Number
				'000		'000		'000
Weighted average number
of shares in issue				32,500		492		25,021
Earnings /(loss) per share				US cents		US '000		US cents
Basic				(7.70)		(1.20)		(8.96)
Diluted				(7.70)		(1.20)		(8,96)

5. Property, plant and equipment
		Leased		Other		Total
		Assets		Assets
		US$000		US$000		US$000
	Cost
	At 6 January 2021	-		-		-
	At 30 June 2021	-		-		-
	Additions	47		-		47
	At 1 January 2022	47		-		47
	Additions	-		14		14
	At 30 June 2022	47		14		61
	Depreciation/Impairment
	At 6 January 2021	-		-		-
	At 30 June 2021	-		-		-
	Charge for the period	2				2
	At 1 January 2022	2		-		2
	Charge for the period	12		-		12
	At 30 June 2022	14		-		14
	Net Book Value 30 June 2022	31		14		47
	Net Book Value 30 June 2021	-		-		-
						-
	Net Book Value 31 December 2021	45		-		45

		30 June 2022		30 June 2021		31 December 2021
		(Unaudited)		(Unaudited)		(Audited)
6. Trade and other receivables		US$000		US$000		US$000
Outstanding on share issue		1,279		-		6,128
Prepayments		553		-		151
Other receivables		83		-		76
		1,915		-		6,355

				30 June 2022				30 June 2021			31 December 2021
				(Unaudited)				(Unaudited)			(Audited)
				US$000				US$000			US$000
7. Trade and other payables
Current
Other payables				272				11			258
Costs of issue for new and existing shares outstanding				-				-			918
Current portion of leases				23				-			22
				296				11			1,198
Non-current
Non-current portion of leases				10				-			22
				10				-			22
Total carrying value				306				11			1,220
8. Short-term facility (current)
Loan on acquisition of Atome Limited				-				581			1,415
				-				581			1,415
	9. Reconciliation of operating profit to net cash outflow from operating activities
				6 months			6 months				Period to
				to 30 June			to 30 June				31 December
				2022			2021				2021
				(Unaudited)			(Unaudited)				(Audited)
				US$000			US$000				US$000
	Profit/(loss) from operations before taxation	(2,501)					(591)				(2,243)
	Depreciation and impairment of property,
	plant and equipment			12			-				2
	Interest accretion on lease liability			1			-				-
	Share-based payments			573			-				83
	Operating cash flows before movements
	in working capital			(1,915)			(591)				(2,158)
	(Increase)/decrease in receivables			(409)			-				(199)
	Increase/(decrease) in short-term facility			(1,412)			581				1,415
	(Decrease)/increase in payables			14			11				966
	Foreign exchange loss/(gain)			12			-				-
	Net cash generated by/(used in)
	operating activities			(3,710)			1				24

10. Capital commitments

The Group's outstanding capital commitments in relation to its projects totalled US$1.5 million as at 30 June 2022 and US$2.4 million as at the date of this report.

-ends-

 

END

 

 

IR BKPBDABKDCCB