Capsol Technologies (CAPSL) Q2 2024 earnings summary

Executive summary

• Uplisted to the main board of Oslo Stock Exchange (Euronext Oslo Børs) in June 2024, increasing accessibility for international investors and following conversion to a public company.

• Mature project pipeline more than doubled year-over-year to 13 million tons of annual CO2 capture capacity, driven by cement, biomass, and gas turbine sectors.

• Entered North American market with a new Houston office and established an international advisory board to accelerate growth.

• Three commercial products: CapsolGo (demonstration), CapsolEoP (full-scale), and CapsolGT (gas turbines), with strong industry partnerships and new studies.

• Business plan fully funded, supported by NOK 92.6 million cash balance and NOK 109 million raised in H1 2024.

Financial highlights

• Q2 2024 revenue was NOK 17 million, over 3x higher than Q2 2023; H1 2024 revenue reached NOK 36.5 million, up more than 5x year-over-year.

• Pre-tax loss for Q2 was NOK -22.1 million, compared to NOK -12.8 million in Q2 2023, due to increased operational and strategic investment costs.

• Operating expenses in Q2 2024 were NOK 38.4 million, including one-off uplisting costs of NOK 4.4 million.

• Ended H1 2024 with NOK 92.6 million in cash and positive cash flow from financing activities.

• Raised net proceeds of NOK 109 million in H1 2024 through private placement and retail offering.

Outlook and guidance

• Expect licensing revenue to materialize by year-end, with first license agreement tied to Stockholm Exergi’s FID in Q4.

• Targeting FEED for CapsolGT in H2 2024 and first plant start-up in 2026/27.

• Focused on expanding project pipeline, securing new licensing agreements, and global scaling through partnerships.

• Targeting 5%-10% market share in a EUR 10-15 billion CCS technology licensing market by 2030, with pre-tax profit margins of 40%-60%.

• Licensing agreements target price range increased to EUR 10-15 per ton installed CO2 capture capacity.