Bawat Water Technologies AB: BAWAT Announces Q3 Report 2022
Hørsholm, Denmark, November 3, 2022 – Bawat Water Technologies AB (BAWAT) today announces its Q3 Report for 2022. The report is available on Bawat’s website (investor.bawat.com)
BAWAT is a leading supplier of sustainable ballast water treatment technology and services. BAWAT was listed on Nasdaq First North Premier Growth Market in Stockholm in March 2022.
Financial Highlights Q3 2022 – Expected lift in margin and Order Intake on the rise
- Order intake in the third quarter was SEK 7.6m and currently Order Intake for the year is SEK 16.9m.
- For the full year 2022, order intake is guided unchanged to SEK 35-50m based on the current strong pipeline of potential orders of maturity and depth which is expected to materialize in the remaining part of 2022.
- Sales amounted to SEK 3.3m (Q3 2021: SEK 2.9m). Recorded POC (Percentage Of Completion) sales relates mainly to recently sold ship solutions and service sales for same.
- The gross profit on sales in the period was reported at 20,2%, which is significantly up from the H1 results and reflects that sales were dominated by recently sold systems to ships. The gross profit is expected to increase to 30% or above in the years to come depending on the sales mix.
- Two ship systems were commissioned with new customers in a smooth and predictable way. Both systems passed trouble free the commissioning test which is mandatory for newly installed BWMS systems as per 1. June 2022. One in Asia and one in Western Europe.
- Quoting activity is still high and in line with H1 activity. More than SEK 50m in quotes for the Q3.
Bawat is active in three market segments within ballast water management. The company estimates the annual market opportunity to:
- Ship installations USD 3bn
- Mobile installations USD 2bn (total market)
- Ballast-water-as-a-Service USD 5bn
FINANCIAL KEY FIGURES Q3 2022
| SEK '1000 | Q3 2022 | H1 2022 | 9M 2022 |
| Order intake | 7.597 | 9.286 | 16.883 |
| Sales | 3.306 | 10.162 | 13.468 |
| Gross Profit | 669 | 504 | 1.173 |
| Gross Profit % | 20,2% | 5,0% | 8,7% |
| EBITDA** | -4.866 | -10.490 | -15.356 |
| Result for the period | -7.986 | -23.807 | -31.793 |
| Earnings per share | -0,20 | -0,60 | -0,80 |
| Cash flow from operations | -9.001 | -18.241 | -27.242 |
| Net working capital | -5.921 | -6.284 | -5.921 |
| Equity ratio % | 29,9% | 38% | 29,9% |
* Parent of the Group was changed from Bawat A/S to Bawat Water Technologies AB
**In addition to this, IPO and other related non-recurrent items SEK 8.1m in H1 2022
Marcus P. Hummer, CEO comments on the developments in the third quarter: “The quarter shows two positive trends supporting the growth and profitability journey that Bawat has embarked after its IPO earlier this year. Firstly, we are pleased to report continued growth in Order Intake and quoting activity, which supports the unchanged full year guidance on Order Intake. The still increasing sales network both internally and via global sales agents are busy with contracts negotiations at all levels of maturity across all relevant geographies.
Secondly, we now see the results of newly sold projects to ships in the gross profit, which we can see is significantly up from the H1 results and already now in line with the predicted long term gross profit margin of 20% for ship systems. This gives us comfort in our project execution after signed contracts – both for ships as well as for mobile systems, and in the years to come we are certain to reach 30% or more in gross profit for the company depending on the sales mix.”
Find the full Q3 2022 report here: https://investor.bawat.com/company-reports/
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.
FOR MORE INFORMATION, PLEASE CONTACT:
Investors & Media:
Marcus P. Hummer, CEO, E-mail: [email protected]
John B. Henriksen, CFO, E-mail [email protected]
Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Telephone: +46 11 32 30 732
This press release constitutes inside information that Bawat Water Technologies AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release on November 3rd, 2022.
For further information about Bawat Water Technologies AB, please contact above.
About Bawat
The development of an entirely new approach to ballast water treatment utilizing onboard waste heat to treat ballast water led to the founding of Bawat in 2011. A ballast water treatment system avoids disposal of untreated water in seas and harbors.
Bawat’s BWMS is a system that is simple, cost-effective, and sustainable, build on a zero environmental impact, using standard marine components. No filters, no chemicals no UV. And is the first to market a USCG/IMO Type Approval BWMS that uses pasteurization to treat ballast water in a one-pass process.
Bawat has built upon its innovative breakthrough, and now offers ballast water solutions to the maritime industry in three categories:
- A ship BWMS for Retrofit and New Builds
- Mobile containerized solution for multiple vessel usage in a port, on a ship or for rigs
- Ballast Water as a Service for contingency services in ports
Bawat is an engineer-driven company that is rooted in the tradition of Danish maritime innovation and with a deep maritime insight: www.bawat.com.