Scandinavian Enviro Systems (SES) Q3 2024 earnings summary

Executive summary

• Net revenues for Q3 2024 reached MSEK 48.5, a significant increase from MSEK 3.0 in Q3 2023, with earnings after tax at MSEK 19.8 compared to a loss of MSEK -19.0 last year.

• For January–September 2024, net revenues totaled MSEK 164.7 (previous year: MSEK 10.7), and earnings after tax were MSEK 81.1 (previous year: MSEK -68.8).

• Major revenue drivers were milestone compensations and invoicing to the joint venture with Antin Infrastructure Partners, with half received in cash and half as joint venture shares.

• Enviro, Michelin, and Antin made a final investment decision for the Uddevalla plant, with construction underway and milestone payments received.

• CEO and CFO transitions occurred during the period, and Enviro’s technology was successfully validated by external partners.

Financial highlights

• Q3 2024 operating income: MSEK 19.2 (Q3 2023: MSEK -20.4); earnings per share before dilution: SEK 0.02 (Q3 2023: SEK -0.02).

• January–September 2024 operating income: MSEK 78.4 (previous year: MSEK -68.5); earnings per share before dilution: SEK 0.10 (previous year: SEK -0.09).

• Group cash at period end: MSEK 123.1 (previous year: MSEK 243.5); equity/assets ratio: 89%.

• Investments in fixed assets for the nine months: MSEK 152.5 (previous year: MSEK 24.6), mainly for technical platform and joint venture shares.

• Cash flow after investments for January–September: MSEK -91.2 (previous year: MSEK -85.1).

Outlook and guidance

• Uddevalla 1 plant construction is the main focus for 2025, with plans for further European roll-out and site identification underway.

• The joint venture aims to reach 1 million metric tons annual production capacity in Europe by 2030.

• Expansion into markets outside Europe is being actively explored, with strong investor interest in North America, South America, the Middle East, and Asia.