SIMEC Atlantis Energy Limited COVID-19 update (4592J)
April 14 2020 - 2:00AM
UK Regulatory
TIDMSAE
RNS Number : 4592J
SIMEC Atlantis Energy Limited
14 April 2020
The information contained in this announcement is inside
information under the Market Abuse Regulation (EU) No 596 / 2014.
The person responsible for arranging the release of this
announcement on behalf of SIMEC Atlantis Energy Limited is Tim
Cornelius, Chief Executive Officer of SIMEC Atlantis Energy
Limited.
Tuesday 14 April 2020
SIMEC ATLANTIS ENERGY LIMITED
("Atlantis" or the "Company")
COVID-19 update
SIMEC Atlantis Energy Limited ("Atlantis"), the global
developer, owner and operator of sustainable energy projects, is
today providing the following Company update on the impact on the
business of the current COVID-19 pandemic.
Whilst the situation across our portfolio of projects requires
constant monitoring and reassessment, at present we have seen
minimal disruption to the tidal business; with MeyGen in Scotland
continuing to export power reliably to the grid. In addition, it
remains our expectation that we will be able to maintain our
current contractual commitments to deliver equipment and services
to our clients in Japan and Scotland this year.
The Green Highland Renewables ("GHR") business has 45 contracts
with operating hydro schemes that require constant monitoring from
our operations centre in Scotland. A reduced team of engineers will
be maintained to enable us to provide essential services to all of
our customers and this will continue unaffected throughout this
period. These services can all continue to be performed whilst
maintaining social distancing guidelines. GHR has three hydro
projects under construction which have been temporarily shut down
in line with current government policies.
Uskmouth Power Station conversion project work programmes are
under review as we adapt to the constraints imposed by the COVID-19
pandemic and the ongoing workplace disruption. Given this backdrop,
it is reasonable to expect some delay to our target financial close
date which was previously set as Q3 2020 for the project; however,
essential project development works are continuing in order to
minimise any delay. In addition, the combustion system design
contract awarded to Mitsubishi Hitachi Power Systems Europe GmbH in
October 2019, is ongoing and at this stage remains on-schedule to
be completed this summer. The application for the conversion's
permit variation for the new fuel was submitted to Natural Resource
Wales in December 2019 and is now open for public consultation.
Further updates on revised timelines to financial close will be
provided to the market when available.
The Uskmouth site has a live 132kV banking station along with
the station's 393MW of generating station assets (220MW of which
will be converted as part of the planned Conversion project). A
team of essential engineering, safety and security staff will, at
all times, be maintained to look after this critical infrastructure
in readiness for future operation.
Outside of the staffing requirements described above, management
has this week placed 27 employees, who are currently unable to
work, on furlough and it will seek to make an application to cover
the cost of these furloughed employees through the UK Government's
Coronavirus Job Retention Scheme. Additional employees may be
placed on furlough in the coming weeks in response to the changing
situation.
To support the Company and preserve liquidity through the
current period of uncertainty, the Chairman and all Non-Executive
Directors will take a 20% cut in their fees and will defer payment
of the remaining fees with immediate effect and the Chief Executive
Officer and executive team will take a 20% salary deferral.
Management are also actively implementing additional cost saving
measures across our business including further reductions in
project, overhead and people costs in order to preserve cash and
provide the business with maximum flexibility.
-ENDS-
Enquiries:
SIMEC Atlantis Energy Limited via FTI Consulting
Tim Cornelius, Chief Executive Officer
Stephen Hutt, Chief Financial Officer
Cantor Fitzgerald Europe (Nominated
Adviser and Joint Broker) +44 (0) 20 7894 7000
Rick Thompson
David Porter
Luke Philippou
J.P. Morgan Cazenove (Joint Broker)
Michael Wentworth Stanley +44 (0) 20 7742 4000
FTI Consulting +44 (0) 20 3727 1000
Ben Brewerton
James Styles
Josh Atkins
Notes to Editors
SIMEC Atlantis Energy
SIMEC Atlantis Energy is the global developer, owner and
operator of sustainable energy projects with a diverse portfolio in
various stages of development. This includes a 77% stake in the
world's largest tidal stream power project, MeyGen, and 100%
ownership of the 220MW Uskmouth power station conversion
project
www.simecatlantis.com
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END
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