OXE Marine AB (publ) Interim Report 1 October to 31 December 2024

Fourth Quarter 2024
· Consolidated Net turnover amounted to SEK 43.6 m (SEK 62.7 m).
· Consolidated Gross Profit amounted to SEK 11.6 m (SEK 14.4 m) with a gross margin of 27% (23%).
· Consolidated EBITDA amounted to SEK -16.9 m (SEK -12.8 m).
· The consolidated result for the quarter amounted to SEK -29.8 m (SEK -18.5 m).
· Consolidated EPS and Diluted EPS amounted to SEK -0.07 (SEK -0.06).
 
January - December 2024
· Consolidated Net turnover amounted to SEK 173.8 m (SEK 189.6 m).
· Consolidated Gross Profit amounted to SEK 54.8 m (SEK 38.2 m) with a gross margin of 32% (20%).
· Consolidated EBITDA amounted to SEK -52.7 m (SEK -78 m).
· The consolidated result amounted to SEK -97.9 m (SEK -116.4 m).
· Consolidated EPS and Diluted EPS amounted to SEK -0.29 (SEK -0.38).

Significant events during the fourth quarter
· OXE Marine initiates a written procedure to obtain bondholder approval of the debt-to-equity swap.
· OXE Marine receives approval from bondholders in written procedure.
· OXE Marine publishes bulletin from the extraordinary general meeting on 28 October 2024.
· OXE Marine publishes prospectus in connection with rights issue.
· OXE Marine announces the subscription period in OXE Marine’s rights issue begins 8 November 2024.
· OXE Marine obtains top guarantee and therefore secures 100% subscription in ongoing rights issue.
· OXE Marine publishes supplementary prospectus.
· OXE Marine announces outcome of rights issue.
· OXE Marine has successfully completed a comprehensive recapitalisation including a rights issue of approximately MSEK 78 and a full restructuring of debt financing of approximately SEK 243 m.
· OXE Marine resolves on previously announced directed share issue to top guarantor after completed rights issue.

Significant events during the year
· OXE Marine received a purchase order worth USD 0.9 m from a US boat builder with an option to increase the total order to USD 3.3 m.
· OXE Marine received a purchase order worth USD 0.9 m from the US Department of State.
· OXE Marine received a confirmation from US boat builder to increase the previously announced order from USD 0.9 m to USD 3.3 m.
· OXE Marine received order of USD 1.5 m to supply a United States governmental agency.
· OXE Marine prepares Control Balance Sheet.
· OXE Marine announces discussions with the EIB and major bondholders to renegotiate terms in order to reinstate the balance sheet.
· OXE Marine receives an additional order from us boat builder for USD 2.6 m taking the total order value to USD 5.9 m including previously announced orders.
· OXE Marine announces conditional recapitalisation incl. a rights issue of approx. SEK 78 m and a full restructuring of debt financing of approx. SEK 243 m, removing all interest-bearing debt.
· Control Balance Sheet shows that the share capital of OXE Marine is fully intact.
· OXE Marine announces discussion with the EIB and major bondholders to renegotiate terms in order to reinstate the balance sheet.
· OXE Marine initiates a written procedure to obtain bondholder approval of the debt-to-equity swap.
· OXE Marine receives approval from bondholders in written procedure.
· OXE Marine publishes bulletin from the extraordinary general meeting on 28 October 2024
· OXE Marine announces the subscription period in OXE Marine’s rights issue begins 8 November 2024
· OXE Marine obtains top guarantee and therefore secures 100% subscription in ongoing rights issue
· OXE Marine announces outcome of rights issue.
· OXE Marine has successfully completed a comprehensive recapitalisation including a rights issue of approximately SEK 78 m and a full restructuring of debt financing of approximately SEK 243 m.
· OXE Marine resolves on previously announced directed share issue to top guarantor after completed rights issue.


Significant events after the reporting period
· OXE Marine receives the largest order in the company’s history of USD 6.6 m to supply a United States Governmental agency. 
· OXE Marine AB changes Certified Adviser to Redeye AB.

A word from the CEO

A fresh start

“Success is not a leap but a series of well-placed steps forward. With the completion of our full refinancing, eliminating debt and securing a stronger financial position, the company has been given a fresh start. At the same time, we have developed gross margin from around 20% in 2022 and 2023 to 32% for the full year in 2024, providing a solid platform for future growth and profitability.”
 
The significance of the refinancing can not be overstated. As a result of the refinancing, SEK 271.2 m  was generated in much-needed equity into the business, consisting of a reduction of liabilities of SEK 201.5 m and SEK 69.7 m net generated from the rights issue. By converting Corporate Bonds to equity, the corporate mortgages over the company have also been released. This refinancing process took place over the larger part of the year and required a significant amount of management time and attention. At the same time, the underlying business has developed positively with gross margin for the full year amounting to 32% (20%) due to an improved sales network, dealing direct with end customers and OEM’s to a larger extent as well as a growing engine population on the market contributing positively to P&A sales.
 
Reflecting on 2024, another bright spot is that OXE’s wholly owned subsidiary in the US, OXE Marine INC, achieved EBITDA profitability for the full year. The US market, especially customers in the governmental segment, has grown significantly since the merger in 2022. Having an experienced, U.S.-based team has enabled us to work more directly with OEMs, strengthening our market position.
 
Business Performance
 
During the quarter, propulsion sales reached SEK 35.3 m (SEK 27.1 m), marking a 30% increase. A notable contribution came from deliveries of the OXE200 inboard, which positively impacted results. Our Albany, Georgia facility saw a 135% production increase compared to Q3, thanks to initiatives implemented in the previous quarter and the dedication of our team. This facility also underwent renovations during the quarter while simultaneously increasing output. At year-end, For the full year, propulsion sales amounted to SEK 124.7 m (SEK 117.7 m), an increase of 6%.
 
Sales relating to P&A amounted to SEK 8.2m (SEK 35.6 m). In the same quarter of the previous year there were large deliveries of P&A towards delivering on the USD 5.8 m order to a US Governmental Agency. Excluding the one-time effect of the order, P&A sales decreased by 21% relative to the same quarter of the previous year. The backlog at the end of the quarter amounted to SEK 2.2 m. Demand remains consistent for parts and accessories as a result of constantly increasing number of engines in operation. For the full year P&A sales amounted to SEK 49.0 m (SEK 71.9 m) a decrease of 32% and mainly attributable to the effects of the delivery of the large order in 2023.
 
Gross margin for the quarter was 27% (23%). While an improvement over the previous year, it was lower than Q3, primarily due to a reduced contribution from P&A sales and increased provisions for obsolete inventory and warranties. Excluding these additional provisions, gross margin would have been 34%. However, our direct-to-OEM business continues to drive overall margin improvements. For the full year, gross margin stood at 32% (20%), reinforcing the positive trend in profitability.
 
Operating expenses (“OPEX”) for the quarter amounted to SEK 26.4 m (SEK 29.1 m).  For the full year OPEX amounted to SEK 106.1 m (SEK 119.6 m), demonstrating continued progress in cost control.
 
Cashflow from operations before changes in working capital amounted to SEK -13.8 m (SEK -13.3 m) and the quarter ended with SEK 44.3 m in cash. Working capital balances were stable: accounts receivable amounted to SEK 18.5m (SEK 34.1m), accounts payable amounted to SEK 34.0 m (SEK 39.2m) and inventory amounted to SEK 107.3 m (SEK 114.1m).  
 
Looking Ahead
 
As we enter a new financial year, fully refinanced and in a stronger position, we do so with momentum. In January, OXE received the largest order in its history—USD 6.6 m — to supply a U.S. governmental agency. In addition, approximately 71% of the contract to fulfil the U.S. boat builder order valued at USD 5.9 m remained as an order backlog, for delivery in 2025.
 
I want to extend my gratitude to all investors who participated in the rights issue for their continued support, as well as to all stakeholders who made this refinancing possible. Lastly, to our dedicated management team and employees—thank you for your hard work and commitment in driving OXE forward throughout the year.
 
 - Paul Frick, CEO