Shares in SIMEC Atlantis Energy Ltd (AIM: SAE, OTC: SMAYF) more than doubled following the release of its delayed preliminary results, which revealed a staggering 678% increase in net assets, reaching £44.2 million.
This increase exceeds five times the company’s market capitalisation before today’s announcement, driven by a reassessment of the “value and size” of SIMEC’s battery storage projects.
For the year ending December 31, the tidal power group’s revenues surged by 292% to £15.3 million, and earnings (EBITDA) reached £8.3 million, compared to a £5.8 million loss the previous year. The 2023 financial performance was also boosted by a £10 million asset disposal.
2023 Financial Highlights include:
· The Group reported a profit of £23.2m, compared with a 2022 loss of £11.1m.
· Increase of 292% in Group revenue to £15.3m (2022: £3.9m).
· Revenues available to the Group, which excludes ring-fenced revenue earned by the MeyGen tidal array, rose to £10.7 million (2022: £nil) . The sale, at Uskmouth, of a ready-to-build 230MW BESS project with a grid connection for £10.0 million accounted for the majority of 2023 revenues, with the balance of £0.7 million being rental income from the Uskmouth site.
· Net Assets increased 678% to £44.2m (2022: £5.7m). The major increase in the valuation of the Group arises from the reassessment of the value and size of our battery storage projects.
· Increase in EBITDA to £8.3m (2022: EBITDA loss of £5.8m).
· Reduction of 30% in SAE’s Group debt, excluding MeyGen debt, to £13.7m (2022: £19.7m). This followed the successful execution of the lease agreement for the 230MW BESS project with Uskmouth Energy Storage Limited. SAE also reached an agreement with its bondholders to rephase bond repayments out of 2024 and into periods commencing in December 2025 and culminating in a final £7.7 million repayment in December 2029.
· Reduction of 29% in Operating costs to £5.0m (2022: £7.0m).
Duncan Black, Chairman of SAE Renewables, commented:
“I am excited about the future for SAE. We have the funding and visibility on future revenues we need to be able to deliver our development projects and service our debt. We have a pipeline of projects that would be the envy of many much larger companies, and we have a Board and Executive team who have a track record of successful delivery. I would sincerely like to thank all the members of our team whose hard work and dedication during the past 12 months has delivered outstanding results for SAE. To the stakeholders in our projects, bondholders, shareholders and governments – thank you for your continued support of our business.”
Graham Reid, Chief Executive Officer of SAE Renewables, commented:
“During 2023, the business has met or exceeded all of its objectives. This provides a great platform from which we can embark on our new strategy: Building a Sustainable Future to 2035, advancing our transition towards becoming an Independent Power Producer.”
A complete version of the 2023 Annual Report and Accounts (“2023 Annual Report”) can be found here: http://www.rns-pdf.londonstockexchange.com/rns/6507T_1-2024-6-24.pdf
