NOS Nova (HRGI) Q2 2024 earnings summary

Executive summary

• Significant progress made on clean ammonia, CO2 storage, and infrastructure projects, with a focus on commercial maturity, regulatory alignment, and investment decisions targeted for 2026.

• Barents Blue Days event generated strong stakeholder and supplier interest, and Gismarvik CO2 Hub received EU Project of Mutual Interest status.

• Management prioritized cost reduction, operational efficiency, and securing additional capital to support project milestones into 2025.

Financial highlights

• Q2 2024 net loss reduced to NOK 29.0 million from NOK 58.7 million in Q2 2023, mainly due to a 50% cost reduction.

• Cash and cash equivalents at quarter-end were NOK 130.6 million, sufficient for planned activities into 2025.

• Operating loss for Q2 2024 was NOK 30.2 million, compared to NOK 61.4 million in Q2 2023.

• Total income for Q2 2024 was NOK 0.0 million, unchanged from Q2 2023.

Outlook and guidance

• Investment decisions for BarentsBlue, Polaris, and Gismarvik projects targeted for 2026, with project startups aligned for 2029-2030.

• Focus on executing project milestones, cost efficiency, and progressing commercial agreements for Barents Blue and Gismarvik CO2 Hub.

• Continued focus on commercial maturity, securing additional funding, and maintaining cost discipline into the fourth quarter.