Audited Results for the year ended 31 Dec 2022

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 Nikita Levine, Investor Relations	[phone] [e-mail]
Beaumont Cornish (Nominated Adviser) Roland Cornish, Michael Cornish	[phone]
Liberum (Joint Broker) Scott Mathieson, Kane Collings	[phone]
SP Angel (Joint Broker) Richard Hail, Harry Davies-Ball	[phone]
finnCap (Joint Broker) Christopher Raggett, George Dollemore	[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 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 £3.0 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

	Note	2022 US$000		2021 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

ASSETS	2022 US$000		2021 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 US$000		2021 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-

 

END