Ocean Sun AS ($OSUN)

My name is Kristian Torvold, and I am the CEO of Ocean Sun. Welcome to the presentation of Ocean Sun's First Quarter Results. Today, as always, we will first briefly talk about the Ocean Sun solution before we go through a few updates and project developments. And then Karl will present the financials. Ocean Sun's patented technology is the world's best floating solar technology. It offers low CapEx due to the low material use, fast and easy installation and lean transportation. It sees high efficiency due to the solar panels being directly water cooled. And the structure derived from Norwegian maritime heritage offers a seaworthy solution. A lot of focus this quarter has been on the Maldives. Our 2-megawatt installation has received a lot of attention, and we are really proud of this achievement. To date, we have produced 1 gigawatt hours of electricity, saved 250,000 liters of diesel and reduced 770 tonnes of CO2 emissions. That is equivalent of the annual CO2 uptake of about 30,000 trees. In a turbulent world, we are seeing diesel prices significantly increase in some regions more than others, and resorts in the Maldives have reported diesel prices over $2 per liter, and we also heard of upwards of $2, $3. This is, of course, a very special situation these days, but there is no doubt that this has resulted in islands and resorts wanting to better position themselves for future supply shocks. And for these islands, there is no better alternative than floating solar. Due to this and to the fact that our project has proven successful over the past months, we are seeing strong and increasing interest from the resort markets. In the picture here, you can see a satellite image of the island from just a few days ago. For Ocean Sun, this means a market of up to $600 million in turnkey project revenue in the Maldives and an additional NOK 500 million in other resorts around the world in the Caribbean, Southeast Asia, et cetera. This is a market with high willingness to pay, great upside for customers in terms of cost savings, energy security, reduced pollution and reduced noise. For Ocean Sun, our design is largely repeatable behind the reef, enabling us to roll out quickly. So we see this as a key market for the coming quarters. In other updates, we have been awarded a new research project with NFR where we will continue strengthening the development of our design for both Tier 2 nearshore and the Tier 1 in lakes and reservoirs. This is in collaboration with IFE, and we are really excited to kick this work off. More updates will come as we work on improving the tech and the reach of our solution in the competitive Tier 1 market. The strategic review is ongoing and no conclusion has yet been reached. We are looking forward to providing further updates on this in the coming future. Our first project in Brazil has now received all permits, design is complete, and we have moved into the purchasing stage. This will be a great showcase for our Tier 1 solution in South America, a market we're seeing huge future potential. We expect this project to be completed in Q3 this year. We also celebrated a 3-year anniversary for the 2-megawatt Banja project. The project has this winter gone through the most rainfall on record in Albania and has handled this very, very well. Project-wise, installed capacity remains the same, but the backlog has been reduced by 2 megawatts. This reduction is due to the [indiscernible] on this project in Greece that will first install 2 megawatts, while the second 2 megawatts will be installed in the future. This project is progressing, and although it's been several years now, we remain confident that the final approvals will be granted and the project will commence. The pipeline has also been reduced some from 36 megawatts to 31 megawatts. This is due to some projects being taken out as we see the permitting will not allow for kickoff within 1 year from today, while other projects have been added. To sum up, at Ocean Sun, we are seeing increasing interest from the resort market, helped by our Soneva project being successful as an enabling solution and from the volatility of the diesel price, of course. This is a huge potential market that we are tracking closely. Although the cash position in Ocean Sun remains strained, we are confident that the strategic review process will end with a good solution for the company and allow us to continue decarbonizing islands around the world for years to come. And now I invite Karl to give a quick update on the financials before we have Q&A.

Thank you, Kristian. So the income in Ocean Sun for the first quarter of 2026 ended at NOK 2.1 million and with a negative result of NOK 6.4 million. We had a negative cash flow in the period of NOK 9.1 million, resulting in an ending cash balance of NOK 6.7 million. As Kristian mentioned, obviously, we monitor this cash position closely, and we have good visibility of both the incoming and the outgoing cash flows in the months ahead. Together with the ongoing strategic review, this provides a solid basis for managing the operations going forward. And with that, we open up for Q&A. And as always, Kristian, I'll read out the questions that we have received during the presentation.

And the first question is around the Maldives. With the current high diesel price, what is the payback period for the Soneva Secret?

Yes. So the Soneva Secret is, of course, 2 megawatt peak floating solar and then 3 megawatt hours of battery. That coupled with -- diesel price is fluctuating, but we would see somewhere between 2 to 4 years, 2 to 3 years right now is the payback on that. So it's very good returns for the investors.

And then a follow-up question there. Given the technical complexity of the Soneva Secret installation, how challenging will it be to scale this technology up?

Well, for resorts, they usually need somewhere between 2 to 3 megawatt hours -- megawatt-peak of the solar and somewhere between 4 and 6 megawatt hours of battery. So this is what we've done at Soneva, and we can repeat that same setup for other locations quite efficiently. Scaling it up, thinking that you will have a larger floating solar installation in the Maldives, that would be more of a grid connected probably closer to Male kind of structure. Also good returns compared to the diesel they're running on today. And the waters are similar behind the reef. So we'll be definitely able to handle that as a scale-up solution as well.

And the Soneva Island is one of the most exposed in the Maldives. So likely coming installations will be easier. And hence, it will be easy to scale with this proven solution in more projects going forward.

That is correct.

Could you provide more details on the collaboration with Candela and how you see this partnership evolving in the coming years?

Yes. So the Candela collaboration is largely between Canopy Power and Candela. Ocean Sun, we are mentioned in the press release around that because we provide a floating solar that will power this setup. But the main dialogue is between our partner, Canopy Power and Candela directly. So Yes, I will not speak on behalf of Canopy Power on how the progress is there, but I know there's hard work going on to come up with good solutions.

Okay. Given the situation in the world at the moment, is energy supply an issue that they focus on in the Maldives?

Yes, definitely. One thing is the high cost of diesel. Another thing is the access to diesel. That's been an issue for many resorts not actually been able to get the fuel they need to run a resort. So this has created a situation where they're actively looking for solutions that will make them less dependent on diesel. So a very clear effect of the diesel price on how they operate.

Okay. When is the next project in the Maldives?

Yes. So we are working hard on projects in Maldives. We have good partners through Canopy Power and others. So we do expect to sign more projects in the Maldives in the near future. We see there is urgency from the customers, and then we try to respond to that. So I'm confident we'll see progress in the Maldives within this year.

Very good. That was the last question.

All right. Thank you very much for the questions. And we're looking forward to coming back with more good news from the Maldives and other places in the weeks and months to come. Thank you.