REG - Kibo Energy PLC - Kibo Subsidiary Announces Business Update

Kibo EnergyAnnouncement

13/06/2024 07:00

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RNS Number : 2111S  Kibo Energy PLC  13 June 2024

Kibo Energy PLC (Incorporated in Ireland)

(Registration Number: 451931)

(External registration number: 2011/007371/10)

LEI Code: 635400WTCRIZB6TVGZ23

Share code on the JSE Limited: KBO

Share code on the AIM: KIBO

ISIN: IE00B97C0C31

('Kibo' or 'the Company')

 

Dated: 13 June 2024

Kibo Energy PLC ('Kibo' or the 'Company')

 

Kibo Subsidiary Announces Business Update

 

Kibo Energy PLC (AIM: KIBO; AltX: KBO), the renewable energy-focused
development company, announces a business update by its subsidiary Mast Energy
Developments PLC ('MED'), a UK-based multi-asset owner, developer and operator
in the rapidly growing flexible power market.

 

Further details can be found in the full  MED RNS  Announcement, which is
available below and at med.energy (https://med.energy/?page_id=3140) .

 

-------------------------

Dated: 13 June 2024

 

Mast Energy Developments PLC ('MED' or 'the Company')

 

Business Update

 

Mast Energy Developments PLC, the UK-based multi-asset owner, developer and
operator in the rapidly growing flexible power market, is pleased to announce
an update regarding business operational matters.

 

Pyebridge

 

Further to the Company's previous announcement dated 21 May 2024, the 2(nd)
Phase work programme regarding the refurbishment of the first of the Pyebridge
site's 3x Jenbacher gensets is progressing well and according to plan and
expected timeline. The latest status is that the new replacement genset
long-block has been received from the supplier in Austria, the existing genset
has been disconnected and craned out of the site and transported to Cooper
Östlund's workshop. Cooper Östlund has completed the full rebuild of the
genset, which involved the replacement of the genset long-block and the
replacement and or refurbishment of all the various major and critical engine
components onto the new engine block. Following the completion of the rebuild,
the refurbished genset was transported back to the Pyebridge site, and
successfully craned back into the facility. The final remaining step in the
process is the recommissioning of the new genset, which is currently underway.
It is expected that the first genset's overhaul work will be fully completed
and the genset to start commercial operational running and revenue generation
around end of June 2024, in line with the expected timeline.

 

To give more insight into the work-stream involved in overhauling the genset,
including photos of key stages during the process, please visit the MED
website, "Pyebridge Overhaul Story" webpage at
https://med.energy/?page_id=4466 (https://med.energy/?page_id=4466) .

 

As this process was completed seamlessly within the planned timeline and
budget for the first genset, we expect the overhaul of the site's other two
gensets to proceed similarly and thus meet our target to have all three
gensets overhauled and operating optimally in due course, as previously
announced.

 

In the meantime, the Pyebridge site's other two gensets remain operational and
will continue to generate revenue via its PPA with Statkraft. Additionally,
Pyebridge will also keep receiving its current Capacity Market contract's
associated annual gross profit margin income of c. £308,000 from the
government, as previously announced.

 

Additionally, as previously announced the Pyebridge site has secured further
Capacity Market contracts to ensure minimum annual gross profit margin income
as follows:

 

*  T-1 2024/2025 CM contract - c. £183,000 gross profit margin income;

*  T-4 2026/2027 CM contract - c. £312,000 gross profit margin income; and

*  T-4 2027/2028 CM contract - c. £322,000 gross profit margin income.

 

MED expects to bid for and secure an additional T-1 Capacity Market contract
for the 2025/2026 delivery year in the next upcoming Capacity Market auction,
thereby ensuring uninterrupted minimum guaranteed income until 2028. The
Site's existing Capacity Market contracts are all fixed one-year contracts.
MED expects to apply for the maximum 15-year term and capacity T-4 Capacity
Market contract in due course.

 

The Pyebridge site's Capacity Market contracts' gross profit margin income
payments are in addition to its electricity generation trading revenue
generation via its PPA with Statkraft. The plan and intention is to add a
minimum guaranteed gross profit margin income floor component to its PPA with
Statkraft (the "PPA Floor"). The PPA Floor value is currently expected to be
at least around £50/kW/annum, subject to certain usual conditions such as
assessment and agreement by Statkraft, which would equate to a minimum annual
gross profit margin income of £405,000 in addition to the site's Capacity
Market contracts' income payments.

 

Both the above referred longer-term Capacity Market contract and the PPA Floor
are expected to be implemented once the Pyebridge site's planned overhaul work
programme as referred to above has been completed, in order to provide further
enhanced and longer-term minimum guaranteed gross profit margin income to the
site.

 

Pieter Krügel, MED CEO, commented: "We are pleased that the overhaul of the
first genset at Pyebridge is progressing according to plan, timeline and
budget, and near complete. We are looking forward to completing the overhaul
work within the expected timeline, and once done, it will increase the
Pyebridge site's income generation substantially. The successful completion of
the overhaul of the first genset will also establish a proven blueprint to
move forward with the overhaul of the site's remaining two gensets, as well as
possible application on MED's other sites in due course in order to reduce
capex costs.

 

"We are looking forward to updating the market with further progress across
the board in due course."

 

ENDS

 

This announcement contains inside information for the purposes of the UK
version of the Market Abuse Regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ('UK MAR'). Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

For further information please visit www.med.energy (http://www.med.energy/)
or contact:

 Pieter Krügel   info@med.energy (mailto:info@med.energy)  Mast Energy Developments PLC  CEO
 Jon Belliss     +44 (0)20 7399 9425                       Novum Securities              Corporate Broker

 

_________________________

 

**ENDS**

 

For further information please visit www.kibo.energy (http://www.kibo.energy/)
or contact:

 

 Louis Coetzee                info@kibo.energy (mailto:info@kibo.energy)  Kibo Energy PLC                        Chief Executive Officer
 James Biddle Roland Cornish  +44 207 628 3396                            Beaumont Cornish Limited               Nominated Adviser
 Claire Noyce                 +44 20 3764 2341                            Hybridan LLP                           Joint Broker
 James Sheehan                +44 20 7048 9400                            Global Investment Strategy UK Limited  Joint Broker

 

Beaumont Cornish Limited ('Beaumont Cornish') is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Johannesburg

13 June 2024

Corporate and Designated Adviser

River Group

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