SeaTwirl report for the quarter March–May

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Important events during the period (2020-03-01–2020-05-31)

• SeaTwirl and Crest Consultants AB in Brazil cooperation
• SeaTwirl makes board changes, electing two new members and one substitute
• SeaTwirl presents LCOE estimates for SeaTwirl S2 and chooses Norway as test site for SeaTwirl S2
• SeaTwirl appoints former vice chairman Peter Laurits new CEO
• SeaTwirl is granted a growth loan of 1 MSEK from Almi
• SeaTwirl issues warrants to key people in the company
• SeaTwirl is granted several patents in the US
• SeaTwirl strengthens the organization with Mats Hult (CFO) and Jonas Boström (CTO)

Important events after the period (2020-06-01–)

• To develop the business and strengthen the organization ahead of a capital raise later in 2020, the company has taken up a related party loan from main owner Knut Claesson. The SeaTwirl S2 is estimated to launch into the sea in 2022.
• Financial development during the period (2020-03-01–2020-05-31)
• Turnover was 0 SEK (0) and the operating result was -2 296 471 SEK (-1 190 212). The negative result is attributable to development costs, including costs for personnel and consultants.
• Balanced development cost amounted to 17 880 316 SEK at the end of the period (17 250 449), in addition to patent costs of 1 177 406 SEK (1 061 245).
• Cashflow for the period amounted to -3 333 207 SEK (-2 007 461). Cash amounted to 1 718 713 SEK at the end of the period.
• Shareholder’s equity amounted to 11 634 001 SEK (19 766 771) at the end of the period, of which the result for the period amounted to -2 296 471 SEK (-1 196 657). 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.

Financial development first nine months (2019-09-01–2020-05-31)

• The result amounted to -5 100 867 SEK (-3 980 835)

Comment from the CEO

It has been an intense spring at SeaTwirl. We have, in our new office, continued to strengthen our organization with more engineers in order to build an in-house competence centre for offshore technology. We have also strengthened our admin functions.

In April, I changed position from vice chairman to CEO to come closer to the day-to-day business. As newly appointed CEO I am really looking forward to focus on the task at hand together with the whole team. We have also strengthened the management team with Mats Hult as CFO and Jonas Boström as CTO. We are preparing the company for growth and to take new steps.

And the step we are now facing is both important and big: to credibly attract capital to build SeaTwirl S2, our 1 MW floating wind turbine. To give ourselves time to optimize our preparations, we accepted an offer for a short-term loan from our main owner Knut Claesson.

This provides us with an opportunity to develop a well-planned process and a cost-efficient plan. We can strengthen our organization and prepare ourselves for a larger capital raise in the future. The extra project time allows us to systematize and optimize the production- and installation processes, which mean that we streamline the development and reduce the lead times for future larger wind turbines.

While Covid-19 has upended markets and the situation for many businesses, we at SeaTwirl have been able to continue to work in accordance with our structured project plan. The interest in the company and for our product remains very high. As the secretary general of the International Energy Agency, IEA, Fatih Birol wrote in his very ambitious wind power report, the technical potential of offshore wind is almost limitless. It is up to us in the industry to develop technology that can realize that potential.

The key is, as in all energy matters, low costs. SeaTwirl has been designed from the bottom up to handle the challenging offshore environment and to minimize costs in every step, from installation to maintenance. In April, we presented third party estimates which showed lower costs than the competition and a very competitive LCOE for the technology we are developing. We also announced that we are negotiating for a test site in Norway for the S2.

Despite the pandemic, the external conditions are still good. Society’s will to continue to support the transition to renewable energy is visible both in politics, for example in the European Commission’s plan for a green recovery, and in business, where large investors are tightening their climate demands. For us at SeaTwirl, who have a technology that is part of the solution, the future is bright, and we are working systematically forwards, step by step.

For more information, please contact:
Peter Laurits, CEO
Phone: +46 70 148 0198
Mail: peter.laurits@seatwirl.com