Interim Management Statement 1 January-31 March 2023
CEO Dr. Martin Edlund: “The need for our tidal energy technology in the global energy transition has never been more clear and accurate than now”
Significant events January-March 2023
•In January, the company reached a commercial milestone, having received a first historic sales order of tidal site development services in Asia. Minesto was contracted to support a leading Asian corporation in the offshore energy sector for evaluation of a tidal current site targeting the deployment of Minesto’s Dragon Class tidal energy power plants.
• Minesto and the Faroese utility company SEV strengthened the partnership through a renewed and expanded collaboration agreement related to tidal energy buildout in the Faroe Islands. An important add-on to the extended agreement stipulates the exclusive nature of the collaboration regarding the Hestfjord site development and buildout.
• At the beginning of February, a strategic collaboration with experienced project developer of tidal energy in the Philippines, Poseidon Renewable Energy Corporation, was initiated. The parties signed a collaboration agreement with the intention to collaborate on establishing tidal energy with Minesto’s technology in the Philippines.
• At the end of February, Minesto strengthened the market position in Asia through entering a collaboration agreement with Taiwan Cement Green Energy (TCCGE), for buildout of renewable energy from tidal streams and ocean currents. TCCGE is a pioneer within renewable energy in Taiwan.
• During the first quarter, the company continued the work with the tidal energy power plants at the grid-connected site in Vestmanna, Faroe Islands, according to plan. The 100-kW tidal power plant, Dragon 4, delivered the highest total production volume for a continuous month of operation at the beginning of the year.
• Shortly thereafter, the power plant was successfully installed at the newly added second foundation in Vestmannasund, and generated first electricity. As part of the ongoing project together with Energimyndigheten, an upgraded tether that is expected to further improve system performance was added to the Dragon 4-system. For installation of the first Dragon 12 system in Vestmanna, a drilled and grouted anchor solution was contracted, a technology ready for array buildout.
• On 2nd February, the company announced that the board of Minesto resolves, subject to the approval by an extraordinary general meeting, to carry out a partially secured rights issue of shares of up to approximately SEK 153.4 million. The general meeting approved the rights issue the 20th of February. The subscription price in the rights issue was set to SEK 5.20 per share
• The subscriptions by exercise of subscription rights and the applications for subscription without subscription rights correspondeded to approximately 57.9 percent of the offered shares. Hence, guarantee commitments of approximately 5,986,285 shares, corresponding to approximately 20.3 percent of the offered shares, was allocated to guarantors. The Rights Issue hence provided the company with approximately SEK 120 million before deduction of transaction costs.
Group in summary 1 January-31 March 2023
• Total operating income amounted to SEK 12,691 thousand (11,117 thousand) and mainly included capitalised development work.
• Operating loss was SEK –6,045 thousand (–4,450 thousand). The negative result is largely attributable to business development and administration related to technology development and includes costs such as personnel and consultants. Of the personnel costs, SEK 10,932 thousand (10,232 thousand) has been capitalised as development work.
• At the end of the period, capitalised development costs amounted to SEK 392,763 thousand (313,037 thousand), in addition to capitalised patent expenses of SEK 15,383 thousand (14,514 thousand), all within the intangible assets of SEK 408,146 thousand (327,551 thousand).
• Grants of SEK 7,953 thousand (18,968 thousand) were accrued during the period, of which SEK 7,056 thousand (18,230 thousand) reduced the acquisition value of the capitalised development costs. During the period, payments of SEK 5,929 thousand (6,986 thousand) were received from public funding schemes, of which 5,929 thousand (6,986 thousand) relates to approved claims.
• Cash flow amounted to SEK 78,391 thousand (–27,531 thousand). At the end of the period, cash and cash equivalents amounted to SEK 114,016 thousand (123,252 thousand).
• At the end of the period, equity amounted to SEK 545,120 thousand (534,193 thousand) divided into 160,732,694 shares (137,655,143 shares), of which loss for the period was SEK –5,637 thousand (–3,595 thousand).