26th Sep 2022 15:38
(Alliance News) - Atome Energy PLC's maiden interim results were applauded by analysts on Monday, with the green energy firm showing "solid" progress.
The Leeds, England-based producer and marketer of green hydrogen and ammonia reported a pretax loss in first half to June 30 of USD2.5 million, widened from USD591,000 a year prior, but it was its operations update that mattered.
"Atome has continued to exceed market expectations since IPO, achieving several key value accretive capacity additions to its green hydrogen and ammonia strategy in Paraguay," Liberum analyst Sam Wahab said.
SP Angel said the report showed "stellar progress".
"Atome currently offers investors a compelling entry point into an exponentially growing market, with first-mover advantage regarding the monetisation of green hydrogen and ammonia using attractively priced hydroelectricity in Paraguay and with a portfolio of over 500 megawatts of large-scale projects in South America and Europe," the broker added.
Atome expects to make its first revenue in 2023 as it continues to make progress on its projects in Paraguay.
Both Liberum and SP Angel reiterated their 'buy' recommendations for the stock. It was trading 3.3% lower in London on Monday afternoon at 99.60 pence each, but has jumped 32% in 2022 so far. Atome made its initial public offering back in late December at 80p.
"We think the year-to-date 2022 milestones achieved towards monetisation through the swift development of its phase 1 Villeta project is clearly an attractive route to establish material early cash flows from its operations in Paraguay," SP Angel said.
"Atome also highlighted that it is advancing talks on extending its power purchase agreements in Paraguay, has secured a grant in Iceland from the government-led energy fund where it continues discussions centred on the power suppliers, and is increasingly active in developing future growth opportunities in new jurisdictions."
Atome expects to begin construction on Villeta in mid-2023, with a view to commissioning the facility by late 2024 or early 2025.
Liberum said: "Atome's investment case offers investors a compelling entry point into an exponentially growing market, with first mover advantage in two strategically important geographies for upstream green energy production in our view."
By Paul McGowan; [email protected]
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