Minesto (MINEST) Q4 2024 earnings summary

Executive summary

• 2024 saw the successful launch and demonstration of the Dragon 12 tidal energy system, reinforcing a leadership position in ocean renewables and enabling commercial scale-up and global market entry.

• The Hestfjord Dragon Farm project in the Faroe Islands advanced with completed technical specifications, strategic partnerships, and the establishment of Drekin as a local operator.

• Independent review by DNV validated the technology's readiness and cost-effectiveness, supporting investment cases for large-scale deployment.

• Internal restructuring led to a 30% reduction in personnel costs and a more commercially oriented management team.

• Focus for 2025 is on business development, commercialization, and scaling up sales, particularly in the Faroe Islands.

Financial highlights

• Full-year operating income was SEK 33,035 thousand (45,590), mainly from capitalised development work; net sales were SEK 75 thousand (391).

• Operating expenses and personnel costs both decreased in 2024 compared to 2023, attributed to operational efficiencies and team restructuring.

• Cash and cash equivalents strengthened in 2024, reaching SEK 34,890 thousand at year-end, reflecting improved cost control.

• Operating cash flow reduced in line with commercialization plans and the D12 launch.

• Rights issue raised SEK 100,040 thousand, offset by SEK 18,169 thousand in issue expenses.

Outlook and guidance

• Ready for commercial Dragon Farm deployments, with a 200MW buildout roadmap in the Faroe Islands and active engagement in global markets.

• Ongoing applications for public funding and project finance are expected to support further sales and expansion in 2025.

• The business model remains as a technology provider, with increased emphasis on enabling local market companies and investor participation.