Miton UK MicroCap Trust plc (LON:MINI) Co Fund Manager Gervais Williams was asked by DirectorsTalk his thoughts on portfolio company Molecular Energies Plc (LON:MEN).
DirectorsTalk asked: “Molecular Energies, formerly known as President Energy, has both profitable hydrocarbon operations and also pursuing an increasing number of opportunities in the alternative energies space. How do you view its strategic plans?
Gervais Williams commented:
“What’s interesting is Molecular Energies have got a profitable core, it is in Argentina, but Argentina needs energy just like anybody else and of course, when they generate energy, it generates dollars, and dollars are very valuable in Argentina. So, from that point of view, it’s got a core profitable unit.
It’s investing, as you say, in other areas, other countries, other technologies. Their market cap has come down, it’s probably halved in the last 12 months to a £15 million market cap but that’s not unusual for many UK quoted companies have come down, particularly small caps.
So, again, it’s very overlooked with what we consider to be a really attractive core story and uplift to come through as that investment succeeds.”
On 13 March 2023, Molecular Energies plc provided a corporate and operational update. Highlights were:
- 2022 Argentine Financial Statements show profit before tax* in excess of US$19 million
- 19 MMboe Independently assessed net 2P Hydrocarbon Reserves for Argentina as at 31 December 2022
- Jordan Coleman named CEO (non board) of the Company’s Hydrocarbon division
- Discussions on the IYA related party debt advancing centered on reducing interest rate on all outstanding monies to zero, extending the maturity period and debt reduction
- Green House joint venture Dual Fuel orders first equipment to progress development work on first engine
- Green House, new 100% owned subsidiary HYSO Limited, working on innovative methods for hydrogen refueling systems for heavy goods vehicles without expensive refueling apparatus
- Green House has formed ATON 6 PLC a 100% owned carbon focused company to capitalize on the Company’s businesses, contacts and experience in relevant carbon related sectors
- Paraguay exploration well remains on track to spud in May
Peter Levine, Chairman, commented:
“With the handing over the executive responsibility in the Hydrocarbon division to my experienced colleague Jordan Coleman, my attention in Molecular turns to develop our Green House Capital division.
“In relation to Green House, as was seen previously with ATOME and now with Dual Fuel, HYSO and ATON 6, each step capitalizes on and uses as a steppingstone some part of the core assets or experience of Molecular as a whole and each introduced into the group to take them to an ultimately independent level in the fullness of time.
“These are early days so step by step, but the direction of travel is clear”.
Molecular Energies plc is an AIM listed company at the forefront of energy development and has interests across the energy spectrum, from oil and gas projects to subdivisions in the green and alternative energy sub-sectors.
The Company has oil and gas production in two geographical markets: Argentina and the United States, as well as exploration assets in both Argentina and Paraguay. The Company also has two separate subdivisions which are focused on early-stage opportunities in the green and/or alternative energy sub-sector.
