Minesto (MINEST) Q2 2024 earnings summary

Executive summary

• Dragon 12 grid-connected powerplant achieved a three-month milestone of trouble-free testing, with an array including D12 and D4 units providing valuable production data for future build-outs.

• Renewed Power Purchase Agreement with Faroese utility Sev, reflecting the value of tidal energy in the Faroe Islands' future renewable mix.

• Significant stakeholder engagement, including visits from international decision-makers and media coverage, highlighting growing interest in Minesto's technology.

Financial highlights

• Total operating income for Jan–Jun 2024 was SEK 13.5 million, down from SEK 25.0 million year-over-year; net sales were SEK 75 thousand.

• Operating loss widened to SEK -23.3 million from SEK -13.3 million year-over-year, mainly due to business development and technology-related administration.

• Net loss for the period was SEK -23.1 million, compared to SEK -9.8 million in the same period last year.

• Cash flow for the period was SEK 60.7 million, with cash and cash equivalents at SEK 76.1 million at period end.

• Equity at period end was SEK 581.5 million, up from SEK 540.1 million year-over-year, with 194.1 million shares outstanding.

Outlook and guidance

• Focus on commercial roll-out of Dragon technology, leveraging verified production data for investment proposals and site-specific business plans.

• Preparation for first dragon farm build-out in Hestfjord, supported by actual D12 production results.

• Continued engagement with strategic partners, customers, and governmental bodies to secure further power purchase agreements and funding.

• Participation in international forums and climate events to position ocean energy as essential for the energy transition.