Capsol Technologies (CAPSL) Q3 2024 earnings summary

Executive summary

• Revenue increased 80% year-over-year to NOK 21.6 million in Q3 2024, driven by strong demand and a growing project pipeline.

• Mature project pipeline expanded by 60% to 15 million tons CO2, with new feasibility studies and CapsolGo® campaigns awarded.

• Technology platform offers 20%-60% lower capture costs versus amine-based solutions, with lower energy usage and integrated heat recovery.

• Fully funded for the current business plan with NOK 66 million in cash and no planned capital raise.

• Positioned for significant growth and value creation, with a scalable, capital-light business model and global reach.

Financial highlights

• Q3 2024 revenue reached NOK 21.6 million, up 80% year-over-year.

• Pre-tax loss improved to NOK 5.9 million from NOK 9.5 million year-over-year.

• Ended Q3 with NOK 66 million in cash; NOK 87 million in contracted revenue and NOK 26 million in costs expected over the next 12 months.

• Gross margins for CapsolGo and related units are around 70%, higher than previously guided 50%.

• NOK 109 million raised in H1 2024 for growth initiatives, including U.S. expansion and CapsolGT.

Outlook and guidance

• Expect to maintain strong gross margins (~70%) over the next 12 months.

• No additional capital raise planned; fully funded for the next 12 months.

• Focus on expanding CapsolGT, growing the project pipeline, and securing more licensing agreements.

• Stockholm Exergi FID expected soon, with further international expansion underway.

• Milestones expected in the next 6-12 months include new CapsolGo® deployments, engineering contract awards, and licensing agreements.