Scirocco Energy Share Discussion Threads

[tomboyb] 16/1/2023 21:04

Presentation on 26th -

Maybe worth a visit then -

Biogas is big. Scir unrisked valued at 1p per share against a share backdrop of 20% of that -

[manual dexterity] 16/1/2023 15:55

Proactive presentation on the 26th of this month

[tomboyb] 13/1/2023 10:59

hxxps://www.bioenergy-news.com/news/totalenergies-commissions-frances-largest-biogas-plant/

Yesterday Total moving big into biogas -

[tomboyb] 03/1/2023 08:14

Blackout fears soar as EDF warns it may have to shut down two nuclear plants in the UK
The new tax on low-carbon power producers will make it far more difficult to keep the ageing Heysham 1 and Hartlepool plants open for as long as had been hoped, according to EDF.

Big moves into alternative energy for the next few years -

Energy top of the list requirement -

[tomboyb] 30/12/2022 12:06

Oil giant BP has completed the purchase of renewable natural gas (RNG) provider Archaea Energy for almost £3bn.

The purchase of the Texas-based firm will help to expand its presence in the US biogas industry, accelerating its bid to decarbintion.

It has been agreed for $3.3 billion (£2.7bn) in cash, as well as around $800 (662m) of net debt2.


Archaea currently operates 50 RNG and landfill gas-to-energy sites, producing over 6,000 barrels of fuel a day. The deal would help to provide a 50 per cent increase to BP’s biogas production ability.

Bernard Looney, bp chief executive, said: “Archaea is a fantastic fast-growing business, and bp will add distinctive value through our trading business and customer reach.



“It will accelerate our key bioenergy growth engine, creating a real leader in the biogas sector, and support our net zero ambition. And, importantly, we’re doing this while remaining focused on the disciplined execution of our financial frame. Investing with discipline into the energy transition, creating further value through integration – this is exactly what bp’s transformation into an integrated energy company is all about.”

CEO of Archaea Energy, Nick Stork, said it “has become one of the largest and fastest growing RNG platforms in the US and today’s announcement will further enable this business to realise its full potential. bp is a world-class partner with an operational history in the RNG value chain that is fully aligned with ours and our partners’, and I look forward to our hard-working team joining the bp organization to help achieve their bioenergy goals.”

READ MORE

Govt launches £18m TV ads encouraging Brits to save energy

[tomboyb] 30/12/2022 10:53

Biogas demand set to increase significantly next year with asset take up -

[tomboyb] 29/12/2022 10:34

hxxps://www.msn.com/en-us/money/markets/oil-giant-bp-completes-27bn-purchase-of-us-renewable-energy-firm-archaea/ar-AA15Kfp4

Oil giant BP completes £2.7bn purchase of US renewable energy firm Archaea
Story by Jack Mendel • Yesterday 3:56 PM

Big moves into Biogas -

[tomboyb] 22/12/2022 14:00

This is another that will have a significant cash pile -

[manual dexterity] 20/12/2022 12:35

The biogas/biomethane industry is now one of the promising segments of the Energy Transition: security of supply, renewables sources, local jobs, round the clock dispatchability;

Biogas is the future so scirocco is in the right area at the right time. Spotify interview well worth listening too.

On holiday at the moment so have a good one.

[manual dexterity] 12/12/2022 11:44

A deal this week from Shell to buy Europe’s biggest biogas producer is the latest sign this big trend has plenty of legs. Our columnist runs through the exposure he has to the sector.

SCIR unrisked value is a minimum of 1p per share. So there is legs here and more significantly in this sector.

[barony] 09/12/2022 14:27

Agreed MD. Now looking significantly undervalued in my ho. Need to see accounts published possibly before share price will reflect. Could be mgt. costs too high.

[manual dexterity] 08/12/2022 07:32

No more dilution for SCIR.

From the Presentation.

Looking at implied value per share of existing assets:
• The unrisked value of the Ruvuma consideration of $16 million
equates to 1.5 p/share
• The risked value of the Ruvuma contingent payments of £9.2
million equates to 1.0 p/share
• Scirocco’s ownership position in EAG represents significant value in
excess of invested cost – estimated at £3.1 million which equates to
c. 0.4 p/share
• Further investment in EAG – for example by reinvestment of
Ruvuma contingent payments in due course - will grow asset base
and net value further.

[manual dexterity] 07/12/2022 16:25

Presentation out.

Implied value of EAG is 0.4p alone.

[manual dexterity] 07/12/2022 09:10

Scirocco Energy says biogas joint venture in talks over new acquisition
Currently, the portfolio comprises Greenan Generation (GGL) and its 0.5 MWe Anaerobic Digestion (AD) plant in Northern Ireland.

Looking to build £100million company for SCIR investment EAG.

[manual dexterity] 07/12/2022 09:00

Knight. Sorry to hear that.

I have bought for the current opportunity. I do think Green tech is the way to go.

[knightrider69] 07/12/2022 08:45

Investor event todayCan someone ask1. What happened to all the money £10m from sale of Helium 1 and Horsehill? 2. Why is insipid chairman still in seat. Idiot needs to be sacked asap fir overseeing waste of money and value destruction

[manual dexterity] 07/12/2022 07:55

BP and Shell have moved into this sector as it grows.

[manual dexterity] 07/12/2022 07:53

Scirocco Energy PLC Corporate Update & Investor Event
07/12/2022 7:00am
UK Regulatory (RNS & others)

Scirocco Energy (LSE:SCIR)
Intraday Stock Chart

Wednesday 7 December 2022

Click Here for more Scirocco Energy Charts.
TIDMSCIR

RNS Number : 8253I

Scirocco Energy PLC

07 December 2022

7 December 2022

Scirocco Energy plc

("Scirocco" or the "Company")

Corporate Update & Investor Event

Scirocco (AIM: SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets, is pleased to provide a corporate update ahead of the Investor Event that it is hosting later today. The update includes various strategic targets as well as the announcement of an exclusivity agreement for the acquisition of an additional bio-gas plant.

The new Corporate Presentation that is being used for the Investor Event will be made available on the website via the following link:



Strategy Update

At the Investor Event, the Board will provide an update on its strategic progress as it seeks to construct a portfolio capable of supporting attractive dividend yield and further growth through re-investment. To date, through the establishment of its Joint Venture with EAG (SCIR 50%), EAG has completed the acquisition of 100% of Greenan Generation Limited (GGL) and its 0.5 MWe Anaerobic Digestion (AD) plant in Northern Ireland. Since completing that acquisition in October 2021, GGL has performed strongly, generating for EAG a 12 month EBITDA estimate to 30 September 2022 of GBP602,000 (unaudited), after c. GBP375,000 of costs associated with operating investments and business development.

Since establishing the joint venture, EAG has developed a pipeline of Biogas acquisitions in line with the stated strategy to acquire "bitesize" plants in the value range of GBP3-4m each. The goal is to acquire individual plants using EAG's "cookie cutter" approach whereby target assets are acquired as SPVs through a combination of debt and equity, the assets are then optimised through operating techniques and investments to grow profitability and enhance the value of each asset and the portfolio as a whole. A typical SPV is forecast to generate c. GBP850k EBITDA with enterprise value in the range of GBP7.5-GBP8.5m per plant, thereby demonstrating the appealing value proposition of the strategy.

Based on the strategic objectives and current deal flow pipeline being progressed by EAG, it is the intention that EAG will, subject to securing the necessary funding, acquire two plants through 2023 and a further two plants in 2024. Should EAG be successful in converting these opportunities as guided then EAG would create a business generating over GBP5 million EBITDA per annum with an implied cash on cash multiple of c. 2.5x accruing to EAG investors.

Exclusivity Agreement for target plant

Consistent with the stated strategy, Scirocco is pleased to announce that EAG has entered into an exclusivity agreement to acquire 100% of the share capital in a target SPV which has been delivering consistent operational and financial results over the past 7 years, generating an EBITDA of GBP567k for its last financial year. It is EAG's expectation that its plans to optimise performance can increase EBITDA at the plant to GBP725k in its first year of ownership.

EAG has completed phase 1 of its DD process using its internal resources and, following signing of exclusivity, will move into Phase 2 which includes drafting of the SPA and associated project documents. The acquisition requires GBP3.8m of acquisition capital as well as approximately GBP200k in closing costs, and will be debt funded to approximately 70% of the total. Assuming all progresses as planned, including sourcing of the necessary finance, then EAG is targeting a completion date at the end of February 2023. Further updates will be provided as and when appropriate.

Tom Reynolds, Scirocco's CEO commented:

"We're pleased to provide investors with a deeper dive into our strategy and the market drivers that support our strategic focus. Our JV with EAG gives Scirocco unique access to a compelling opportunity pipeline that can be converted on highly attractive and value accretive terms. The JV's initial acquisition of GGL last year demonstrates the low-risk and high-margin profitability of these assets and the value uplift that EAG provides upon completion. In that regard, we are pleased to provide the market with strategic targets that we believe can be comfortably delivered by EAG based on the pipeline being progressed. As detailed in the presentation we provide today, subject to financing being available as expected, the team is confident of building an asset base with enterprise value of up to GBP100 million by 2027.

In the context of this update, we are also pleased to announce the Exclusivity Agreement that EAG has signed with a target SPV. The team's extensive internal DD on the target indicates that this SPV benefits from all the factors consistent with EAG's investment model and represents a compelling opportunity for EAG and Scirocco. While this process is still relatively early stage and formal DD is required, we are hopeful that EAG will progress this opportunity to SPA in the coming months with a view to adding a second plant to the portfolio in Q1'23. In parallel with the DD process, EAG is also progressing funding discussions and is confident that the implied multiples of these targets and the compelling market drivers that support investment into this sector in pursuit of UK's net-zero targets will ensure the most appropriate form of funding can be secured to complete any subsequent transaction."

For further information:

[barony] 06/12/2022 14:48

Good progress.