Tidal pioneer hails 2017 as pivotal year

L Progress of key Meygen project flagged after deal to join Gupta network

growth prospects as we move into an exciting new era, building a diversified sustainable energy business of material scale with the support of Simec and the GFG Alliance.

“Our focus now is on progressing the proposed conversion of the Uskmouth power station. We also remain focused on seizing the opportunities associated with the GFG Alliance’s high-quality renewable power asset pipeline by acquiring and developing operational, cash-yielding projects to drive the business forward and create a renewable energy platform that will deliver attractive returns for our shareholders.”

Analyst Adam Forsyth of Cantor Fitzgerald said in a note initiating coverage of the firm that its transformation into Simec Atlantis Energy “creates a major renewable energy development company with a pipeline of strong assets”.

He added: “The tidal opportunity remains but the Uskmouth project brings a really flexible asset into the mix and the portfolio beyond this is strong. Combined with the ability to secure offtake in long term agreements we think Simec Atlantis will offer a diversified opportunity of scale. We initiate with a target price of 75p and a ‘buy’ recommendation.”