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Interim report: Continued progress despite challenges from the pandemic

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The underlying global demand for energy storage is large and growing rapidly. This is reflected in the partnerships we have, the commercial agreements we have secured, and the positive dialogues we have with customers around the world.

In August, a conditional order was signed for 20 TES.POD® units with Egyptian Engazaat and in September, Azelio passed an important milestone when we, according to plan, started production of the industrially manufactured product TES.POD® in volume design. After the end of the period, a binding order was also signed in South Africa for 8 TES.POD® units to a value of approximately SEK 11 million over 15 years.

Azelio's published validation data shows that the system works in all aspects according to the technical performance specification, for which the leading certification body DNV prepares a report for third-party validation. It will enable customers to finance projects using our technology. During the quarter, Azelio strengthened its global presence through establishments in Australia and South Africa and the recruitment of Country Directors.

The pandemic's limitations mean that negotiations with customers become more complex and time-consuming as it is difficult to visit project sites. The pandemic has also resulted in globally strained supply chains with delays and component deficiencies, which also affects Azelio.

Azelio's focus for 2022 is to take the step towards an industrial rollout on a larger scale in a market that is at the beginning of large and rapid growth.

Significant events

Q3: Jul – Sep 2021

  • In August, Azelio signed a conditional order with Engazaat Development S.A.E. on 20 units of Azelio's renewable energy storage, TES.POD®. The order, which is conditional on, apart from the usual project objects, the ongoing techno-economic feasibility study for this specific project, has a value of approximately $ 1.5 million and is expected to be delivered in December 2021.
  • The company's global presence was strengthened with Country Directors in South Africa and Australia, both markets with ambitious plans for renewable energy.
  • Azelio was granted two new patents, published in the USA and China as well as in Sweden, and thus has 16 patents and several under registration.
  • Production in volume design of the energy storage TES.POD® was started as planned in September. To ensure high quality in both the product and the supply chain, production will begin at a low pace and then scale up to high volumes in 2022.
  • Holders of the warrant program TO 27 have exercised warrants to 448,000 shares, which provided the company with just over SEK 16 million.

After the end of period

  • Azelio published a white paper with validation data on technical performance for TES.POD®, which shows that the system works in all aspects according to the technical performance specification. This is the same data that Azelio provided to DNV, that is working on finalizing a report for third-party validation.
  • Together with 24 other technology companies, energy players and investors, Azelio launched the Long Duration Energy Storage Council at COP26 in Glasgow. The Council is working to speed up the transition to carbon neutrality by 2040 with the help of energy storage.
  • Azelio receives an order for 1.3 MWh of renewable electricity supply corresponding to 8 units of its energy storage TES.POD®, from the South African agricultural company Wee Bee Ltd. The order has a value of approximately 1.2 million US dollars over a period of 15 years, including expected price increases.

Group financial development

Q3: Jul – Sep 2021

  • Net sales amounted to kSEK 391 (164)
  • Operating profit/loss (EBIT) amounted to kSEK -91,228 (-49,536). As a result of the start of commercialisation, the company began to write off development costs, which entailed an increase in depreciation and amortisation to kSEK -35,663 (-5,461)
  • Earnings per share before and after dilution totalled SEK -0.79 (-0.53)
  • Profit/loss for the period amounted to kSEK -91,604 (-49,764)
  • Cash flow amounted to kSEK -96,856 (192,859)
  • Cash and bank balances amounted to kSEK 617,597 (417,027)

First nine months: Jan – Sep 2021

  • Net sales amounted to kSEK 1,118 (622)
  • Operating profit/loss (EBIT) amounted to kSEK -255,900 (-142,938) after depreciation and amortisation of kSEK -73,431 (-15,708)
  • Earnings per share before and after dilution totalled SEK -2.29 (-1.57)
  • Profit/loss for the period amounted to kSEK -256,953 (-143,431)
  • Cash flow amounted to kSEK 285,046 (361,371)
  • Cash and bank balances amounted to kSEK 617,597 (417,027)

For more information, please contact

Jonas Eklind – CEO                                     
Email: jonas.eklind@azelio.com                  
Tel: +46 709 40 35 80     

Fredrik Wäppling - CFO                            
Email: fredrik.wappling@azelio.com
Tel: +46 709 91 12 34        

This disclosure contains information that Azelio AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 19 November 08:00 CET.  

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