Knox Energy Solutions (KNOX) H1 2024 earnings summary

Executive summary

• Hyon AS discontinued maritime hydrogen, sold hydrogen tech, and shifted to oil and gas, becoming Knox Energy Solutions AS after a reverse takeover by Blue Concept Ltd on 16 April 2024.

• Blue Concept transferred 19.95% of Rapid Oil Production Ltd to Knox, with a planned share swap for all Rapid Oil shareholders, potentially giving them up to 94% of Knox.

• Knox aims to build an independent oil company via consolidations and acquisitions, focusing on undervalued companies and special situations.

• New board and management with extensive oil and gas and capital markets experience; CEO continues from Hyon.

Financial highlights

• Revenue for H1 2024 was NOK 537,500, up from NOK 109,000 in H1 2023.

• Net loss for H1 2024 was NOK -2,479,449, a significant improvement from NOK -11,922,158 in H1 2023.

• Net cash outflow for H1 2024 was NOK -4,008,906; cash and cash equivalents at period end were NOK 379,192.

• Equity increased to NOK 43,302,495 as of 30 June 2024, up from NOK 3,568,257 at year-end 2023, mainly due to capital increase and Rapid Oil share acquisition.

• No debt as of 30 June 2024; balance sheet strengthened by Rapid Oil shares.

Outlook and guidance

• Knox sees strong potential for shareholder value growth under its new oil and gas strategy and Euronext Growth listing.

• Secured USD 0.5 million (NOK 5.4 million) convertible loan in August 2024 to support operations.

• Ongoing uncertainties regarding continued listing status; financial and legal due diligence in progress.

• Additional funding will be required to support operations over the next 12 months.