Cortus Energy (CE) Q2 2024 earnings summary

Executive summary

• Technical milestones achieved, including record syngas production and successful gas engine tests, strengthen position in gasification technology.

• Significant financial challenges persist due to market uncertainty, higher input costs, and limited syngas offtake by Höganäs AB.

• Strategic focus on cost structure review and prioritizing profitable production lines, with ongoing efforts to secure long-term financing.

Financial highlights

• Net sales for Q2 2024 were 1.3 MSEK, down from 3.0 MSEK in Q2 2023; H1 2024 net sales were 1.8 MSEK, down from 5.1 MSEK year-over-year.

• Operating loss for Q2 2024 was -17.0 MSEK (Q2 2023: -18.3 MSEK); H1 2024 operating loss was -36.2 MSEK (H1 2023: -34.7 MSEK).

• Net loss after tax for Q2 2024 was -19.4 MSEK (Q2 2023: -19.7 MSEK); H1 2024 net loss was -43.3 MSEK (H1 2023: -37.5 MSEK).

• Earnings per share for Q2 2024 were -0.31 SEK (Q2 2023: -0.01 SEK); H1 2024 EPS was -1.03 SEK (H1 2023: -0.02 SEK).

• Available cash at June 30, 2024 was 8.9 MSEK (June 30, 2023: 8.0 MSEK).

Outlook and guidance

• Focus on transitioning to commercial operations in Höganäs and commercialization of WoodRoll® technology.

• Ongoing cost structure review and prioritization of profitable production, such as biocoal and syngas.

• Engaged a leading Nordic bank to secure new long-term financing.