SeaTwirl report for the quarter September–November 2019

Important events during the period (2019-09-01–2019-11-30)

• Jens Tommerup elected chairman
• Disclosure notice from GU Ventures

Important events after the period (2019-12-01–)

• SeaTwirl’s CEO leaves
• SeaTwirl hires interim CEO

Financial development during the period (2019-09-01–2019-11-30)

• Turnover was 0 SEK (0) and the operating result was -1 369 345 SEK (-1 664 936). The negative result is attributable to development costs, including personnel cost.
• Balanced development cost amounted to 17 835 791 SEK at the end of the period (15 858 003), in addition to patent costs of 1 110 261 SEK (1 024 345).
• Cashflow for the period amounted to -4 439 820 SEK (-2 830 863). Cash amounted to 9 242 953 SEK (7 519 530) at the end of the period.
• Shareholder’s equity amounted to 14 828 531 SEK (22 082 671) at the end of the period, of which the result for the period amounted to -1 369 345 SEK (-1 664 936). 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 IEA special report Offshore Wind Outlook 2019 thinks that offshore wind power can grow to become a trillion-dollar industry by 2040. But there is potential for more. In his foreword to report, the executive director Fatih Birol writes that the potential for offshore wind to contribute to the climate conversion is “near limitless”.

To have contributed, as the first employee, to build up SeaTwirl in this industry has been a very rewarding and educational experience. I feel privileged and after seven years It also feels natural hand the reins to someone else. I am convinced that the first-class team we have built will go on to achieve great things together with my successor.

Our chairman since September last year is Jens Tommerup whose CV speaks for itself. With his leadership from the board and the new interim CEO Peter Schou, that I will hand over to, the company remains in safe hands also in the short term.

Our work on the SeaTwirl S2 continues, as does our strategic work of securing our innovations and market position with a strong patent portfolio. At the start of this year, we received notice that we will get a patent for our technical solution for a divisible turbine also in Europe. The solution makes it easier to replace the generator housing, which both reduces maintenance cost and minimizes downtime.

The recipe for being a winner in tomorrow’s energy landscape will be the same as in yesterday’s: to have lowest total cost for producing energy. SeaTwirl, which has been designed from the bottom up to minimize all costs, has all the prerequisites for becoming a winner.

That is not just our own assessment but also that of the EU’s SME instrument, which in June awarded us a grant of 2,48 MEUR. The grants go to companies that are deemed to have “ground-breaking ideas with the potential to create new or revolutionize old markets”. The project that the grant was awarded for is now in full swing.

After the holidays, we moved our office to Lilla Bommen in Gothenburg where we have view over Göta Älv. Getting closer to water is symbolically the right move, since SeaTwirl develops floating wind turbines that will take all the advantages that water gives.

SeaTwirl’s chairman Jens Tommerup and project manager Jonas Boström visited WindEurope’s big offshore conference in Copenhagen in November, where several of the suppliers we are talking to also participated. They had several good meetings and reported back about an industry brimming with optimism.

With this comment, I would like to say goodbye. It has been seven amazing years and I’m certain that the bright future that both SeaTwirl and the industry are envisioning will become true.

The report can be found on the website (in Swedish):

 https://seatwirl.com/sv/for-investerare/finansiella-rapporter-dokument-och-kalender/