Atlantis execs take pay cut but tidal business stays safe

SIMEC Atlantis said that COVID-19 pandemic has had minimal disruption to its tidal business as it furloughs employees on other projects and implements cost saving measures to maintain liquidity.

SIMEC Atlantis

MeyGen in Scotland continues to export power reliably to the grid.

In March this year, MeyGen delivered 26 gigawatt hours (GWh) of renewable electricity to the national grid.

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In addition, Atlantis said it believes it will be able to maintain its current contractual commitments to deliver equipment and services in Japan and Scotland this year.

Cost saving measures

The chairman and all non-executive directors will take a 20 per cent cut in their fees and will defer payment of the remaining fees with immediate effect.

Also, the chief executive officer and executive team will take a 20 per cent salary deferral.

Management is also implementing additional cost saving measures across the business.

This includes further reductions in project, overhead and people costs.

Green Highland Renewables

The Green Highland Renewables (GHR) business has 45 contracts with operating hydro schemes that require constant monitoring.

A reduced team of engineers will provide essential services and this should continue unaffected throughout this period, Atlantis said.

Three hydro projects have been temporarily shut down in line with current government policies.

Uskmouth Power Station

Uskmouth Power Station conversion project work programmes are under review.

“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,” Atlantis said.

The company has kept a team of essential staff at the Uskmouth site.

However, management has this week placed 27 employees, who are currently unable to work, on furlough.

Atlantis plans to apply to cover the cost of these furloughed employees through the UK Governments’ Coronavirus Job Retention Scheme.

In addition, more employees may go on furlough in the coming weeks in response to the changing situation.