SeaTwirl’s report for the second quarter

“The sea is amazing and offers great opportunities for those who are willing to take them.”

SeaTwirl today published an interim report. Read the English summary here. The complete report is found here:

Important events during the period (2018-12-01 – 2019-02-28)

• SeaTwirl gets a positive decision of a grant of €433 952 and joins alliance
• SeaTwirl gets 100 000 SEK for a IP-check
• Holds annual general meeting where the board gets authorization to decide about one or more issues of new shares and/or warrants and/or convertibles.

Important events after the period (2019-02-28 – )

• SeaTwirl, Colruyt Group and Norsea Group sign Letter of Intent to collaborate in financing, developing and installing the SeaTwirl S2-1MW floating wind turbine
• Granted a US patent for a divisible wind turbine

Financial development during the period (2018-12-01 – 2019-02-28)

• Turnover was 0 SEK (0) and the operating result was -1 119 186 SEK (-1 394 815 SEK). The negative result is attributable to development costs, including personnel cost.
• Balanced development cost amounted to 16 920 792 SEK (12 649 953 SEK) SEK at the end of the period, in addition to patent costs of 819 679 SEK (865 271 SEK).
• Cashflow for the period amounted to -2 467 610 SEK (-1 916 580 SEK). Cash amounted to 5 051 920 SEK (14 600 770 SEK) at the end of the period.
• Shareholder’s equity amounted to 20 963 429 SEK (26 150 693 SEK) at the end of the period, of which the result for the period (2017-12-01 – 2018-02-28) amounted to-1 119 242 SEK (-1 394 815 SEK). No changes other than the result for the period and transfer to Fund for development costs has affected the shareholder’s equity during the second quarter.

Comment from the CEO

At SeaTwirl, the development progresses with the full-scale turbine SeaTwirl S2, which has a generator capacity of 1 MW. In order to secure the best possible way to success, we have searched for partners who can contribute with both capital and expertise. With partners in the relevant areas, we can continue to develop SeaTwirl S2 at the pace we want.

Therefore, we are more than happy to have signed a letter of intent with the Belgian Colruyt Group and the Norwegian Norsea Group in early April. Provided that the due diligence process goes well and an agreement is signed, they will inject capital in tranches as we achieve milestones in our development. The plan is that they together will invest SEK 70 million and own approximately 19 percent of the company each.

Colruyt Group is a listed family company in Belgium whose subsidiary Parkwind has since 2009 been developing, building and operating offshore wind farms in Europe. Like us, they see offshore wind power as a future industry and therefore want to position themselves for a future where floating wind power is growing strongly.

Norsea Group has extensive experience in offshore and marine operations and contributes to development, service and installation in the sea. The company, which has emerged from the oil service industry, has expanded within offshore wind power and sees the need to move out the wind turbines to greater depth where innovative solutions such as ours contribute to lowering costs. Norsea Group’s owners are the global maritime group Wilhelmsen, which is listed on the Oslo Stock Exchange.

Getting these two companies in, with their expertise and experience in offshore and establishing wind power farms, takes us to a whole new level. While we are taking big steps forward, the economic benefits of renewables are becoming clearer. In a report from the beginning of April, IRENA (International Renewable Energy Agency) concluded that the world’s investment cost in order to follow the Paris agreement by 2050 will decrease sharply due to falling costs for wind and sun.

Our view has always been that it is the cheapest electricity production that will be expanded and has therefore, from the very beginning, had costs in mind when we have designed our solution. We utilize the unique conditions that exist for a floating wind turbine to reduce costs as much as possible in every step. With a granted patent in the US during March that protects a modular system, we strengthen the belief that SeaTwirl’s solution will be a cost-effective alternative.

The sea is amazing and offers great opportunities for those who are willing to take them. In that spirit, Niklas Persson from our partner Alten, along with five others, has left Portugal to beat the rowing world record of the Atlantic. As a proud sponsor we say: Go for it! ”

Read the report (in Swedish) here!