Climeon (CLIME) Q2 2024 earnings summary

Executive summary

• HeatPower 300 supply chain fully established; first systems installed at NEO Group, Lithuania, with commissioning underway.

• Strategic partnerships signed with Grandbow Technology (China), World Ocean Co. (South Korea), and Franman (Greece) to expand marine market reach.

• Rights issue and warrant exercise raised SEK 23 million before costs; conditional SEK 10 million loan from Swedish Energy Agency converted to grant, eliminating long-term debt.

• EU-funded CHEK Horizon 2020 project completed, enhancing Climeon's profile in energy-efficient marine technology.

• Management changes: CFO to be replaced by year-end; new COO appointed.

Financial highlights

• Q2 2024 net sales: SEK 0.8 million (Q2 2023: SEK 0.6 million), mainly from commissioning and aftermarket.

• Q2 operating loss: SEK -24.8 million (Q2 2023: SEK -23.0 million); net loss after financial items: SEK -27.1 million (Q2 2023: SEK -25.0 million).

• H1 2024 net sales: SEK 14.1 million (H1 2023: SEK 1.1 million); operating loss: SEK -48.5 million (H1 2023: SEK -46.0 million).

• Cash and cash equivalents at period end: SEK 42.0 million (H1 2023: SEK 77.5 million); including restricted cash: SEK 53.6 million.

• Order intake Q2: SEK 0.4 million (Q2 2023: SEK 12.8 million); order backlog: SEK 40.7 million (Q2 2023: SEK 49.6 million).

Outlook and guidance

• Management expects increased demand for HeatPower 300 driven by stricter energy efficiency and carbon regulations.

• Anticipates higher order frequency as market references accumulate and customer decision cycles mature.

• Focus on cost reduction, product efficiency, and cash flow optimization to support future growth.

• All ten systems ordered to date expected to be delivered in 2024.