Ampeak Energy reports interim results and financial close of first battery project

Ampeak Energy Plc (LOM:AMP) has announced its unaudited interim results for the six months ended 30 June 2025. A complete version of the interim results can be found on the Company website www.ampeak.energy.

Chairman’s Statement

The Group’s key focus for the first half of 2025 was on achieving financial close of the Afon Wysg 1 project (AW1), a 240 MWh Battery Energy Storage System (BESS) project located at the Group’s Uskmouth Sustainable Energy Park (USEP). 

On 5 August 2025, post-period, we were delighted to announce that we had reached financial close of AW1. This marks a major milestone for the Group as its first battery project developed and then taken to financial close and in which it retains a majority controlling shareholding.

The total cost for the project is £67.4 million, of which £45.3 million is being provided from a project financing facility from Nord/LB, with the remainder funded by the AW1 project company shareholders. The Company is retaining a 75.3% controlling shareholding in the AW1 project company. Whilst the Group has developed a first battery project at the USEP, it divested this project in 2023 to another developer prior to financial close and has used a part of the proceeds to fund equity for the AW1 project. The AW1 project is forecast to commence operations in Q4 2026 and generate for the Group average revenues of £13 million per annum and average EBITDA of £9 million per annum in its first five full years of operation, which will be transformative for cashflows.

Whilst the Group’s focus during the reporting period was towards financial close of the AW1 project, progress was made in the other development projects, detailed further below, in particular the development of battery projects at the USEP and adjacent to MeyGen, as well as continuing early-stage development of other opportunities at the USEP.  In light of the uncertainties created by National Grid’s ongoing connections reform process, the Group has also commenced exploring battery opportunities in other markets to mitigate any delays to its existing battery project pipeline.

Whilst the Group reported a loss for the six months to 30 June 2025, the loss was reduced compared to the same period last year, as a result of an improvement in financial performance of the MeyGen Phase 1 operating tidal array and the Group’s continued discipline in controlling corporate and other operating costs.

Following approval by shareholders at the Company’s Annual General Meeting, on 20 August 2025 the Company announced a change of name from SIMEC Atlantis Energy Limited to Ampeak Energy Limited, with a change in the Company’s stock market ticker to AMP. The change of name, following financial close of the AW1 project, signals the Group’s increased focus on battery projects and the wider transition to net zero. The name change was supported by the Company’s shareholder, SIMEC, reflecting its reduced minority shareholding in the Company relative to the time of its initial investment.

Projects Updates

Battery Storage

We continue to develop additional projects at the USEP. This site continues to benefit from its strategic location with existing grid and logistical infrastructure. USEP continues to receive strong support from the local community and planning authorities for the redevelopment of the site. The additional projects under development are:

·      AW2, with a planned capacity of 500 MWh and which is currently in the planning process with approval expected in Q4 2025. This project has a target grid connection date of 2029.

·      AW3, with a planned capacity of 700 MWh, which has a target grid connection date of 2037.

The connection date for both of these projects is subject to National Grid’s connections reform process which is currently ongoing.

The “Mey BESS” project in the North of Scotland, with a planned capacity of 1.2 GWh, is now with the Scottish Government Energy Consents Unit for determination, with planning consent expected to be granted in Q4 2025. This project has a target grid connection date of 2029, and whilst it is subject to the connections reform process, it does benefit from having protected status.

Several additional BESS opportunities have been identified by the management team, a number of which are in collaboration with existing partners. Whilst discussions are still at an early stage, they provide the opportunity for us to grow our portfolio further and we look forward to providing further details on these projects as they are progressed.

Tidal Stream

MeyGen Phase 1

The MeyGen Phase 1 array has continued to break generation records on a monthly basis with three turbines currently in stable operations.  The fourth is non-operational due to an export cable fault which is due to be remedied during Q4 2025. The MeyGen operations team is doing an excellent job in operating and maintaining the MeyGen Phase 1 turbines and has developed invaluable expertise and experience that is enabling the ongoing successful operation of MeyGen Phase 1, which is being brought to the development of MeyGen Phase 2.

MeyGen Phase 2

We continue to explore options for the development of the MeyGen Phase 2 project, which remains challenging. We continue to strongly believe that tidal power should form an important part of the energy mix as one of the few sources of predictable renewable power generation, however, there remain significant permitting, transmission connection and funding challenges to be overcome, as well as the need to demonstrate the next generation of tidal turbines that future phases of the project would need to deploy to ensure their financially viability. 

Summary of Results

The Group reported a loss before tax of £4.6 million for the six-month period to 30 June 2025 (H1 2024: £6.0 million), an improvement on the same period last year supported by higher power generation and lower maintenance costs at the MeyGen tidal array and maintaining, corporate and other operating costs at similar levels to the prior period.

The Group reported revenues of £3.5 million for the six months ended 30 June 2025 (H1 2024: £12.1 million). The prior period results included £9.9 million from the sale of land at Uskmouth which was not repeated in H1 2025. Revenues available to the Group, which excludes ring-fenced revenue earned by the MeyGen tidal array, were £0.4 million (H1 2024: £10.1 million).

Revenues generated from the sale of electricity from the MeyGen Phase 1 tidal array improved to £3.2 million (H1 2024, £1.9 million) following the successful deployment of the fourth turbine in November 2024. Electricity generation from the array for the six-month period to 30 June 2025 increased to 7.9GWh (H1 2024: 5.1GWh)

Operating costs were stable at £4.6 million (H1 2024: £4.5 million). Costs associated with the operation and maintenance of the MeyGen array fell to £1.0 million (H1 2024: £1.5 million) in the latest six-month period following the successful deployment of the fourth turbine in November 2024. A reduction of £0.8m to the previously reported value of the sale of land on which the AW1 battery project is being built is included in operating costs.

Employee costs were comparable with the same period last year at £2.0 million (H1 2024: £1.9 million).

Corporate costs and estates maintenance fees at the Uskmouth Sustainable Energy Park remained steady at £0.9 million (H1 2024: £1.0 million).

Financing costs increased to £3.0 million (H1 2025: £2.7 million) due to higher accrued interest on the  MeyGen debt. Interest payable to bondholders during the six-month period increased slightly to £0.7 million (H1 2024: £0.6 million).

Business Segment Reporting

The Project Development segment represents development expenditures incurred on projects. Where projects reach financial close, for example the AW1 BESS project, as announced post-period on 5 August 2025, eligible development costs are capitalised. In H1 2025 £2.5 million of development costs incurred on the AW1 BESS project were capitalised. Where projects are in the process of being developed, those development costs are reported in this segment as operating costs. Where projects do not become commercially viable their development costs are reported as operating costs in this segment.

The Tidal Stream segment reported EBITDA of £2.3 million (H1 2024: £0.4 million) following the successful redeployment of the Meygen array’s fourth turbine in November 2024 and, subsequently, all four turbines generating electricity throughout most of H1 2025. With all four turbines in operation, turbine maintenance costs were materially lower contributing to the improved financial performance of the array. The Tidal Stream segment’s financial performance is materially impacted by accrued interest expense on the predominantly non-recourse MeyGen project debt, included below in financing.

During the reporting period, the Battery Storage segment reported an EBITDA loss of £0.8 million (H1 2024: EBITDA profit: £9.2 million). The prior period EBITDA profit included the receipt of revenue from the land sale contract with EL (Uskmouth) Ltd, which was not repeated in H1 2025. Operating costs of £1.0 million include a reduction of £0.8 million from the previously reported value of £9.8 million for the sale of land on which the AW1 battery system storage project is being built.

The Corporate segment includes employee costs and those costs associated with running an AIM listed and Singapore incorporated group. The financing cost reported in this segment is the semi-annual interest expense payable to Abundance bondholders.

The unaudited consolidated cash position of the Group at 30 June 2025 was £5.3 million (30 June 2024: £7.7 million). Included in cash and cash equivalents in the statement of financial position are encumbered deposits of £0.7 million (30 June 2024: £0.7 million).

Duncan Black

Chairman, Ampeak Energy