Interim Management Statement 1 January–31 March 2020
CEO Dr Martin Edlund: “Our current strong cash position allows us to focus on creating industrial value and promote the market uptake of our unique product. This fits well with the bigger picture and macro trends where we see and hear encouraging messages from EU leaders and politicians on the support for the renewable agenda.”
Significant events during the reporting period
- In February, Minesto signed a power purchase agreement (PPA) with the Faroese electric utility company SEV. The PPA comprises both the planned installations of two 100kW systems of Minesto’s subsea kite technology and an additional 2MW capacity allocated for installations of utility-scale tidal energy systems in the Faroe Islands.
- In March, Minesto announced the establishment of a Faroese subsidiary, Minesto Føroyar ApS, which will facilitate testing and developing Minesto's technology in the Faroe Islands. At the same time, Minesto announced that the global development related to the new coronavirus through mid-March 2020 had not had any negative impact on incoming deliveries of components and subsystems for the company's installation project in the Faroe Islands.
After the end of the reporting period
- In April, Minesto announced that the company and its collaboration partner SEV have been granted all necessary permits and consents for the installation of two grid-connected tidal kite systems in Vestmannasund, Faroe Islands.
The Group in summary January–March 2020
- Total operating income for the quarter amounted to SEK 11,850 thousand (9,105 thousand) and consisted mainly of capitalised work on own account.
- The operating loss was SEK –3,224 thousand (–4,413 thousand). The negative result is largely attributable to business development and administration related to technology development and includes, among other things, personnel costs, rents and services. Of the personnel costs, SEK 10,542 thousand (8,469 thousand) has been capitalised as work on own account.
- At the end of the period, capitalised development costs amounted to SEK 177,533 thousand (246,811 thousand), including expenses for patents of SEK 12,702 thousand (11,195 thousand).
- Grants of up to SEK 16,349 thousand (1,278 thousand) were raised during the period, of which SEK 15,164 thousand (642 thousand) reduced the acquisition value of the capitalised development costs. During the period, payments of SEK 27,905 thousand (11,380 thousand) were received from public funding schemes.
- Cash flow for the period amounted to SEK 81,515 thousand (34,410 thousand). At the end of the period, cash and cash equivalents were SEK 135,621 thousand (39,201 thousand).
- At the end of the period, equity amounted to SEK 396,848 thousand (344,700 thousand), divided into 125,607,304 shares (106,201,541), of which the result for the quarter amounted to SEK –1,898 thousand (–2,344 thousand).
The Interim Management Statement is available on Minesto’s website: https://minesto.com/investor/investor-information.
For additional information please contact
Head of Communications & Investor Relations, Minesto AB
+46 31 774 14 89
The information in this press release is such that Minesto AB (publ) shall announce publicly according to the EU Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on 23 April 2020.
Minesto is a leading marine energy technology company with the mission to minimise the global carbon footprint of the energy industry by enabling commercial power production from the ocean.
Minesto’s award winning and patented product, Deep Green, is the only verified marine power plant that operates cost efficiently in areas with low-flow tidal streams and ocean currents.
With more than €40 million of awarded funding from the European Regional Development Fund through the Welsh European Funding Office, European Innovation Council and InnoEnergy, Minesto is the European Union’s largest investment in marine energy to date.
Minesto was founded in 2007 and has operations in Sweden, Wales, Northern Ireland and Taiwan. The major shareholders in Minesto are BGA Invest and Midroc New Technology. The Minesto share (MINEST) is traded on Nasdaq First North Growth Market. Certified Adviser is G&W Fondkommission, email: email@example.com, telephone: +46 8 503 000 50.
Read more about Minesto at www.minesto.com
Press images and other media material is available for download via bit.ly/Minesto_media.