Ocean Sun AS (OSUN) Earnings Call Transcript & Summary

Dear all, thank you very much for joining this quarterly presentation. My name is Kristian Torvold, and I'm the CEO of Ocean Sun. Today, as always, I'll go through Ocean Sun in brief, talk about a few highlighted updates, project developments, and in the end, Karl will go through the financials. Our vision is still Ocean Sun shall be the leading, sorry, Ocean Sun shall be the world leading technology supplier for floating solar systems. This is the vision we live every day at Ocean Sun. Our floating solar solution is the best in the world. We have low CapEx due to the lowest material use. We have fast and easy installation process. And we have lean transportation. In addition to that, we have high efficiency due to the water cooling of the modules, and our solution is sea worthy. To give you a few updates on the projects we have had in the last quarter, first of all, I want to talk about our Magat project in the Philippines. As mentioned, in November, it sustained some damage during a typhoon Nika. This typhoon was over 200 kilometers hours winds in the region. And we are working closely with SNAP on the way forward. We have communicated with them, of course, the -- how the updates of our design over the last 5 years would have handled this typhoon very well. Furthermore, our partner Alotta has won a new project in Bafjordstranda in North Norway or mid Norway. It's the most -- northern most FPV in the world. It's one floater and which is expected to be completed this year. Lastly, our installation in Banja, Albania past 2 years operation. Very proud of this installation, and we were down there now in November and inspected to have learnings and see improvements that we can bring with us for our next installations. A few other updates. Our project in Brazil is progressing well, and we expected to have a finished demo around the second half of this year. Furthermore, in the Maldives, the construction is a little delayed due to the readiness of the resort, but we expect COD in Q2 2025. For other business updates, we have completed 2 PFS studies, pre-feasibility studies. We have hired a new CCO, Kristin, who we are very excited about joining us, April 1. We have started the collaboration with Canopy Power in Australia, a good partner of us, also in Maldives. And we're looking forward to opening up the Australian market that is still in its infancy with only one small installation built. And lastly, we have the kickoff of the PERSEUS EU project. This is an EU Horizon project that is focused on Perovskite PV modules. Our role is to test these modules on our membrane based floating solar. For projects we have still 11 projects built around the world, total 3.8 megawatt peak installed. We have a backlog of 6.3 megawatt peak and a pipeline now of 34 megawatt peak that we are very confident about for the coming months, quarters, and years. And with that, I will leave the word Karl to give an update on the financials.

Thank you, Kristian. The revenue in the full year 2024, preliminary ended at NOK 19.1 million. It's up 14% towards 2023. Looking at this, it contains both sales revenue and revenue from our contribution projects. If we look at the sales revenue isolated, we see that they are up 140% year-on-year, which is a good trend. The result for the year-ended at NOK 16.9 million loss. However, this contains NOK 4.9 million in non-recurring costs related with severance pay for '24 and provisions for '25, as well as payments for interim services. So if we adjust for these non-recurring costs, the result is about NOK 3.9 million better than in 2023, which, of course, is a good projection as well. The cash flow was driven by the negative result, and the cash position at year-end was almost NOK 30 million and this position remains strong. We are monitoring our cash closely, of course, but we are happy with it, and it's a strong position to continue our operations to-date. And with that, we go in for Q&A.

Yes, any questions for us, Karl?

Okay. Yes. We have one questions so far, and it is, what's the reason for the delay in the Maldives?

All right. So the resort that we're working with, Soneva Secret was not ready to start the installation when we had hoped. So it's delayed a couple of months due to that, but we're very confident that they will start construction now and be completed in the second quarter of this year.

Okay. And then we have another question. How many megawatts do you need to break even?

So if you combine the actual installations with support projects and the PFS and feed studies that we're doing, I would say we'd need around 30 megawatt peak installed annually to break even. Now anything less than that would also, of course, extend our runway. So we don't need the full 30 megawatts right away, but that's about what we need, which is our pipeline actually.

Okay. And that was the last question.

Okay. Well, then thank you very much for tuning in. It was a quick one today, and I'm looking forward to see you all for the next quarterly presentation. Thank you.