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Interim report: Production start approaching as planned

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Azelio strengthened its commercial organisation in the second quarter by establishing sales organisations in Australia, South Africa and the Middle East. Moreover, the company was selected for Accelerator programmes in India and Indonesia with the aim of introducing Azelio’s technology in collaboration with the Swedish Energy Agency and Business Sweden.

Preparations for the start of production at the end of September are progressing as planned and include securing the supply chain as well as the design and fine tuning of numerous new processes. In addition, a memorandum of understanding (MOU) was signed with US-based MMR Constructors, with the aim of developing projects combining Azelio’s long-duration energy storage, TES.POD, with solar PV to thereby supply customers with renewable energy around-the-clock. Azelio has thus entered 15 MOUs and has two extensive collaborations in place with Abu Dhabi-based Masdar and Morocco-based Masen.

In addition to the company's two commercial contracts for one and two storage units, respectively, in August Azelio received a conditional order from Engazaat Development S.A.E. on 20 units of Azelio's renewable energy warehouse, TES.POD®.

The ongoing pandemic is creating challenges worldwide, also for Azelio. Challenges related to suppliers and business partners but also for our business development, where restrictions make project specifications and assessments more difficult and time-consuming.

Significant events

Q2: April–June 2021

  • The annual general meeting elected Carol Browner, Elaine Weidman-Grunewald and Hans-Ola Meyer as new Board members, and Bo Dankis, Hicham Bouzekri, Kent Janér, Pär Nuder and Bertil Villard were re-elected. Bo Dankis was also appointed Chairman of the Board.
  • The Swedish Energy Agency and Business Sweden selected Azelio for Accelerator programmes in India and Indonesia. Membership in the programmes provides Azelio with a unique opportunity to establish partnerships and grow in two of the world’s most attractive markets for renewable energy.
  • An extraordinary general meeting on 18 June resolved to adopt a long-term incentive programme for the Board.
  • A MOU was signed with MMR Constructors, with the aim of developing projects combining TES.POD with solar PV to supply customers with renewable energy around-the-clock. The collaboration aims at an installed capacity of 250 MWh by 2027, starting with a small-scale installation in 2022.

Events after the end of period

  • In August, Azelio received a conditional order from Engazaat Development S.A.E. on 20 units of Azelio’s TES.POD® renewable energy storage units. The order, which is conditional on, apart from the usual project items, the ongoing techno-economic feasibility study for this specific project, has a value of approx. USD 1.5 million and is expected to be delivered in December 2021

Group financial development

Q2: April–June 2021

  • Net sales amounted to kSEK 629 (330)
  • Operating profit/loss (EBIT) amounted to kSEK -99,938 (-48,414). 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 -33,419 (-5,322)
  • Earnings per share before and after dilution totalled SEK -0.87 (-0.53)
  • Profit/loss for the period amounted to kSEK -100,289 (-48,583)
  • Cash flow amounted to kSEK -117,010 (-68,960)
  • Cash and bank balances amounted to kSEK 714,415 (224,200)

Half year: Jan–Jun 2021

  • Net sales amounted to kSEK 726 (458)

  • Operating profit/loss (EBIT) amounted to kSEK -164,671 (-93,404) after depreciation and amortisation of kSEK -37,769 (-10,247)
  • Earnings per share before and after dilution totalled SEK -1.49 (-1.04)
  • Profit/loss for the period amounted to kSEK -165,348 (-93,652)
  • Cash flow amounted to kSEK 381,902 (168,502)
  • Cash and bank balances amounted to kSEK 714,415 (224,200)
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 20 August 08:00 CEST, 2021.     

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