Report for the quarter March–May
Important events during the period (2019-03-01 – 2019-05-31)
- Patent granted for a divisible turbine in China
- SeaTwirl, Colruyt Group and Norsea Group signs a Letter of Intent for investment and cooperation in the development and installation of the SeaTwirl S2-1MW floating wind-turbine
- Patent granted for a divisible turbine in the US
Important events after the period (2019-05-31 –)
- SeaTwirl is awarded a grant of 2.48 million EUR from the EU
Financial development during the period (2019-03-01 – 2019-05-31)
- Turnover was 0 SEK (0) and the operating result was -1 190 212 SEK (-1 171 479). The negative result is attributable to development costs, including personnel cost.
- Balanced development cost amounted to 17 250 449 SEK at the end of the period (13 343 786), in addition to patent costs of 1 061 245 SEK (924 619).
- Cashflow for the period amounted to -2 007 461 SEK (-2 368 393). Cash amounted to 3 044 459 SEK (12 232 377) at the end of the period.
- Shareholder’s equity amounted to 19 766 771 SEK (24 972 769) at the end of the period, of which the result for the period amounted to -1 196 657 SEK (-1 177 924). 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.
Comment from the CEO
The success continues for both SeaTwirl and floating wind-power. In the industry, the first floating windfarm in the USA has been given the go-ahead, and in Europe, a twenty-year PPA was signed for Hywind off the coast of Scotland.
SeaTwirl is also developing quickly. In June, we were granted 2.48 million euro (about 26 million SEK) from the European Innovation Council’s SME instrument. The competition for the grants, which are meant for entrepreneurs who can create whole new markets or disrupt old ones, is fierce and the selection process rigorous. The applications are reviewed by professionals who selects companies for further presentations and interviews, before a jury consisting of venture capitalists, entrepreneurs and experts decides who gets the grants.
We see our management of the process and getting the grant as a stamp of quality. That experts outside our company, such as the EU and our potential partners, see the same potential for our technology as we do, strengthens us not only financially, but also gives the whole company a big injection of positive energy in the work of finishing and launching the full-scale turbine, SeaTwirl S2.
In April, as we’ve mentioned before, we signed a Letter of Intent with Colruyt Group and Norsea Group that will, subject to all milestones being reached, give us a capital injection of 70 million SEK and two new main owners that will get 19 percent each.
At the same time, we continue to prepare the grounds for commercial success and an important part of that is to build our patent portfolio. It was therefore very pleasing when our patent for a divisible turbine, that not only lowers the costs for installation and maintenance but also reduces downtime, was also granted in China in May.
China’s demand for energy is growing quickly and the country is forecasted to be the fastest growing offshore wind market in the coming years. In that kind of scenario, floating wind-power, which can be placed in the 80 percent of good wind sites that are too deep for bottom-based turbines, has a big role to play.
As you know, the sea offers great opportunities for those willing to take them. Niklas Persson and his team has on that note reached land in South America. The goal was to break the world record for rowing across the Atlantic, but since the team was forced to make an unplanned stop in Cabo Verde to mend the broken desalination equipment, the record remained out of reach. The team gritted their teeth though, and instead beat the world record between Cabo Verde and French Guyana.
As a proud sponsor, we congratulate Niklas and his team to the performance. Their determination and grit will stand as an inspiration for us in our work of taking all the opportunities that the sea and our technology offers.