SeaTwirl report for the quarter June–August

Important events during the period (2019-06-01–2019-08-31)

• SeaTwirl is awarded a grant of 2.48 million EUR from the EU

Important events after the period (2019-09-01–)

• SeaTwirl is awarded a grant of 2.48 million EUR from the EU

Financial development during the period (2019-06-01–2019-08-31)

• Turnover was 0 SEK (0) and the operating result was -3 568 583 SEK (-1 221 922). The negative result is attributable to development costs, including personnel cost.
• Balanced development cost amounted to 17 654 851 SEK at the end of the period (14 546 606), in addition to patent costs of 1 101 080 SEK (962 783).
• Cashflow for the period amounted to 10 638 314 SEK (-1 881 984). Cash amounted to 13 682 773 SEK (10 350 393) at the end of the period.
• Shareholder’s equity amounted to 16 197 876 SEK (23 747 607) at the end of the period, of which the result for the period amounted to -3 573 319 SEK (-1 225 162). No changes other than the result for the period and transfer to Fund for development costs has affected the shareholder’s equity during the third quarter.

Result for the year (2018-09-01–2019-08-31)

• The result for the year amounted to -7 549 731 SEK (-4 973 496)

Comment from the CEO

It has been a busy year for SeaTwirl. In September last year, Jens Tommerup was elected to the board. He came from the position as CEO of MHI Vestas. In September this year, he succeeded as chairman Roger Strömberg, who as a representative for GU Ventures chose to resign after many years. The change of chair marks a new phase for SeaTwirl, where we will continue to build on the fantastic foundation we’ve built to become a leading player within the global floating wind power industry.

Looking back at the past year, one can see that we’ve come a long way. We searched for partners that could bring expertise and contacts in addition to capital and found Belgian Colruyt Group and Norwegian Norsea Group. Colruyt Group has experience in building and running offshore wind parks and Norsea Group, which is part of the Wilhelmsen Group, has extensive experience from offshore and marine operations.

Since we signed our letter of intent in April, we have worked closely with both partners in validating concepts and design principles and are now preparing possible agreements with Colruyt Group and Norsea Group.

In June, we got more external validation of our technology when the EU awarded us a grant of 2.48 million euros from their SME instrument. The grants are awarded in tough competition to companies that are deemed to have “pioneering ideas with the potential to create new or revolutionize existing markets”. To be awarded this EU grant is a recognition for SeaTwirl.

Day to day, we continue to focus on the development of SeaTwirl, our 1 MW turbine, with an even greater market focus.

With Jens’ extensive and relevant experience from the wind power industry, Roger and GU Ventures, in their role as a seed financing focused incubator for Gothenburg University, felt that it was time to move on. Roger therefor resigned from the board in September while GU Ventures reduced their ownership. As CEO, I want to thank them both for their work during the years.

I can note that we have come a long way in a short time. I am also convinced that we will reach even further in the future. We have competent team in place and the external factors continue to speak for us.

Just in the last few months, the consultancy firm E3 in California and the Strathclyde University in Glasgow independently of each other reached the same conclusion: the value of floating wind will be great in the future. For instance, E3 wrote in their report that floating wind can play a key role in California’s energy transition to 2040.

With another successful year behind us and continued favourable conditions, we at SeaTwirl look towards the future with confidence.