Ocean Sun (OSUN) Q2 2024 earnings summary

Executive summary

• Achieved significant milestones in technology, operations, and business development during Q2 and H1 2024.

• Q2 2024 revenue reached NOK 2.4 million, up from NOK 0.5 million in Q2 2023, driven by project completions and license fees.

• H1 2024 operating income totaled NOK 10.0 million, with research grants contributing NOK 6.5 million.

• Leadership changes included a new CEO and upcoming appointments of a CPO and COO to support strategic focus and growth.

• Focused on hydropower reservoirs and expanding into the resort market after a key contract win.

Financial highlights

• Revenue for H1 2024 reached NOK 10 million, more than doubling year-over-year.

• Net result for H1 2024 was negative NOK 6.7 million.

• Q2 2024 operating loss was NOK 4.7 million (Q2 2023: NOK 4.5 million); H1 2024 operating loss was NOK 7.6 million (H1 2023: NOK 11.1 million).

• Cash and cash equivalents stood at NOK 37.3 million as of June 30, 2024, with no interest-bearing debt and an equity ratio of 85%.

• Revenue sources included project work, license fees, pre-feasibility studies, and contribution grants.

Outlook and guidance

• Anticipates increased revenue into next year, supported by a solid cash position.

• Ocean Sun expects to close 13 mature projects totaling 36.4 MWp within a year, with a broader pipeline exceeding 600 MWp.

• Pipeline of 36 MW, if fully realized, would enable break-even.

• Positive about ongoing and future projects in Southeast Asia, Europe, and Brazil.

• Additional feasibility and engineering studies are underway in East Asia, Southeast Asia, Latin America, and Southern Europe.