Simec Atlantis Energy has announced that its chairman and non-executive directors will take a 20% cut in their fees, and will defer payment of the remaining fees, with immediate effect in response to COVID-19 pandemic.
Its chief executive and executive team will also take a 20% salary deferral, SIMEC said in a statement on the London Stock Exchange.
The company said the unprecedented move has been taken to support the company and preserve liquidity through the current period of uncertainty.
“Management are also actively implementing additional cost saving measures across our business including further reductions in project, overhead and people costs in order to preserve cash and provide the business with maximum flexibility,” the statement said.
The global sustainable projects developer has also placed 27 employees, who are currently unable to work, on furlough this week in response to COVID-19 pandemic.
Additional employees may be placed on furlough in the coming weeks, Simec said.
The company said it has seen “minimal disruption” to its tidal business, with MeyGen in Scotland continuing to export power reliably to the grid.
Simec also said it fully expects to be able to maintain its current contractual commitments to deliver equipment and services to clients in Japan and Scotland this year.
“The Green Highland Renewables business has 45 contracts with operating hydro schemes that require constant monitoring from our operations centre in Scotland. A reduced team of engineers will be maintained to enable us to provide essential services to all of our customers and this will continue unaffected throughout this period,” the statement said.
“These services can all continue to be performed whilst maintaining social distancing guidelines. GHR has three hydro projects under construction, which have been temporarily shut down in line with current government policies,” it said.
Uskmouth Power Station conversion project work programmes are under review as we adapt to the constraints imposed by the COVID-19 pandemic and the ongoing workplace disruption.
“Given this backdrop, it is reasonable to expect some delay to our target financial close date which was previously set as Q3 2020 for the project; however, essential project development works are continuing in order to minimise any delay,” the statement said.
“In addition, the combustion system design contract awarded to Mitsubishi Hitachi Power Systems Europe GmbH in October 2019, is ongoing and at this stage remains on-schedule to be completed this summer.
“The application for the conversion’s permit variation for the new fuel was submitted to Natural Resource Wales in December 2019 and is now open for public consultation. Further updates on revised timelines to financial close will be provided to the market when available,” it added.
Simec has a 77% stake in the world’s largest tidal stream power project, MeyGen, and 100% ownership of the 220MW Uskmouth power station conversion project.