Bawat Water Technologies AB: BAWAT Announces Q3 Report 2023
Hørsholm, Denmark, November 21, 2023 – Bawat Water Technologies AB (BAWAT) today announces its Q3 Report for 2023. 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.
Full year guidance and highlights Q3 2023
- The Order Intake for the quarter including orders received up until this press release supports a narrower target guidance for the year from the previously SEK 40-60m range to a SEK 40-50m range. This is more than a doubling from 2022.
- The Gross Profit in the quarter was reported at 38.3%, which raises the 9M Gross profit to 33.1%, in line with the long-term projection of 30% pending product mix. The gross profit is trending higher and faster than originally anticipated and will support our goal to reach EBITDA break-even late 2024.
- No new large orders were reported in the quarter.
- Ballast as a Service, BaaS, has been organized under one executing organization called Bawat BaaS.
Post quarter, Damen and Bawat has on 9th November signed a significant Joint Venture agreement focusing on manufacturing and global sales of mobile ballast water units. Details later in this press release.
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 (BaaS) USD 5bn
FINANCIAL KEY FIGURES Q3 2023
| SEK '1000 | Q3 2023 | 9M 2023 | 9M 2022 |
| Order intake | 3.291 | 23.848 | 16.883 |
| Sales | 7.649 | 15.943 | 13.468 |
| Gross Profit | 2.928 | 5.274 | 1.173 |
| Gross Profit % | 38,3% | 33,1% | 8,7% |
| EBITDA* | -1.998 | -14.599 | -15.356 |
| Result for the period | -7.108 | -28.816 | -31.793 |
| Earnings per share | -0,14 | -0,63 | -0,80 |
| Cash flow from operations** | -6.689 | -22.156 | -27.242 |
| Net working capital | -1.870 | -1.870 | -5.921 |
| Equity ratio % | -5,8% | -5,8% | 29,9% |
*In addition to this, Capital raise and other related non-recurrent items SEK 2,2m (SEK 8.1m in 9M 2022)
**In addition to this, Capital raise and other related non-recurrent items SEK 2,2m (SEK 8.1m in H1 2022)
Marcus P. Hummer, CEO comments on the developments in the third quarter: “The quarter was characterized by daily business in delivering on ongoing orders. No significant orders were reported from the quarter.
The revenue conversions converted at a gross profit margin of 38.3% which for the 9M reaches 33.1% and is now at our long-term projection of minimum 30%. This is a positive trend that is due to more mobile BWMS orders in the product mix, and the trend will support the speed for reaching prognosed EBITDA breakeven late in 2024.
We have established our sales organization related to our Ballast as a Service (BaaS) approach and is now communicating with one clear approach in both USA and Europe on Bawat BaaS. The BaaS organization has been strengthened with a business development manager in Europe and post-closing of the quarter two more seasoned BWMS individuals are entering the US based organization.
We have significant expectations that this entity will propel Bawats sales and Ballast as a Service significantly in the years to come.
Post-closing significant events;
Post quarter orders have been received to support a full year guidance of SEK 40-50m. This means that we expect to close the year with more than double the order intake relative to 2022 and with a gross margin that supports our continue forecast to be EBITDA breakeven at the end of 2024”.
On November 9th, Damen Shipyard Group and Bawat signed a 50/50 joint venture agreement finalizing the already communicated intention at term sheet level during Q2 2023. With the establishment of the joint venture, Bawat gets a unique and significant scaling ability on sales and manufacturing for its mobile units through Damens global manufacturing and sales network. Bawat will still retain ownership of all IP rights to the mobile solutions and is selling a technology license to the Joint Venture that in turn is buying the finished product from Damen. The combination of BWMS know-how, manufacturing capabilities, a combined global sales network and a joint belief in mobile BWMS demand in the market is the synergy that drives the Joint Venture. More details in press release by following below link.
https://investor.bawat.com/news/detail?releaseIdentifier=F8A9974FB74C0E3E
The contracts for the mobile BWMS will onwards be taken through the Damen Bawat Joint Venture and this will have a consolidating effect on Bawat Water Technologies AB’s Profit & Loss. At EBITDA level the consolidating effect will be negligible relative to the reporting method used prior Joint Venture reporting.
Find the full Q3 2023 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
[email protected]
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 21st, 2023.
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:
- 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.