Bawat Water Technologies AB: BAWAT Announces Q4 Report 2022
Hørsholm, Denmark, February 21, 2023 – Bawat Water Technologies AB (BAWAT) today announces its Q4 Report for 2022. The report is available on Bawat’s website (investor.bawat.com)
BAWAT is a leading supplier of sustainable ballast water treatment technology and services. BAWAT was listed on Nasdaq First North Premier Growth Market in Stockholm in March 2022.
Financial Highlights Q4 2022 – delayed large orders and further lift in margin:
- Order intake in the fourth quarter was SEK 1.2m and Order Intake for the year is SEK 18.1m.
- The low Q4 Order Intake reflects the difficulty in projecting decision making on larger orders for mobile containerized solutions. These orders have a large impact on the full year volume and thus have a large on/off effect on reaching guidance.
- Sales in Q4 amounted to SEK 2.4 m (Q4 2021: SEK 3.3m). Recorded POC (Percentage of Completion) sales relates mainly to recently sold equipment and service sales for same.
- The gross profit on sales in the period was reported at 64.4% reflecting the high degree of service and project completion in the sales figures for the quarter. The gross profit is expected to increase to 30% or above in the years to come depending on the sales mix.
- Ship systems were commissioned with new customers in a smooth and predictable way, all passing trouble free the commissioning test which is mandatory for newly installed BWMS systems as per 1. June 2022.
- Quoting activity is still very high and Q4 marked the highest quoted volume recorded. More than SEK 75m in quotes for the Q4.
Bawat is active in three market segments within ballast water management. The company estimates the annual market opportunity to:
- Ship installations USD 3bn
- Mobile installations USD 2bn (total market)
- Ballast-water-as-a-Service USD 5bn
After closing of Q4 one large order for a mobile unit has been confirmed from end-customer in February 2023 and second large order for mobile units is still in commercial negotiations. The confirmed mobile order is for Bawat Ballast-water-as-a-Service (BaaS) partner Freedom Ballast in the US, and together with the order is also a service order for BaaS between Freedom Ballast and their end-customer. Bawat is equity owner in Freedom Ballast and will thus benefit from the BaaS service cash flow. Also, order intake for ship installations is received in the period after closing of Q4.
FINANCIAL KEY FIGURES Q4 2022
| SEK '1000 | Q4 2022 | 9M 2022 | 12M 2022 |
| Order intake | 1.217 | 16.883 | 18.100 |
| Sales | 2.398 | 13.468 | 15.866 |
| Gross Profit | 1.545 | 1.173 | 2.718 |
| Gross Profit % | 64,4% | 8,7% | 17,1% |
| EBITDA** | -5.960 | -15.356 | -21.320 |
| Result for the period | -7.186 | -31.793 | -38.979 |
| Earnings per share | -0,19 | -0,80 | -0,99 |
| Cash flow from operations | -6.236 | -27.242 | -33.478 |
| Net working capital | -4.469 | -5.921 | -4.469 |
| Equity ratio % | 17,4% | 29,9% | 17,4% |
* Parent of the Group was changed from Bawat A/S to Bawat Water Technologies AB
**In addition to this, IPO and other related non-recurrent items SEK 6.9m in 2022
Marcus P. Hummer, CEO comments on the developments in the fourth quarter: “The quarter shows the challenge in predicting timing for Order Intake. We didn’t reach our guidance for the full year as already announced in January but are pleased to report that one of the two larger orders that made up the bulk of the missed guidance has been confirmed in February 2023. Activity on the commercial side of the business is high and the increase in quoting activity is across all three activity legs in Bawat at an all-time high.
As also reported in third quarter, we have further seen the increase in gross profit in the fourth quarter to 64.4 %, and already now Bawat is close to the predicted long term gross profit margin of 20% for ship systems. This gives us comfort in our project execution after signed contracts – both for ships as well as for mobile systems, and in the years to come we are certain to reach 30% or more in gross profit for the company depending on the sales mix.”
“For the full year 2023, order intake is guided to SEK 40-60m and an estimated EBITDA break-even is forecasted to be reached in H2 2024. The forecast is based on projected revenue, cost, and margin structure.”
Find the full Q4 2022 report here: https://investor.bawat.com/company-reports/
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.
FOR MORE INFORMATION, PLEASE CONTACT:
Investors & Media:
Marcus P. Hummer, CEO, E-mail: mph@BAWAT.com
John B. Henriksen, CFO, E-mail jbh@BAWAT.com
Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Telephone: +46 11 32 30 732
This press release constitutes inside information that Bawat Water Technologies AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release on February 21st, 2023.
For further information about Bawat Water Technologies AB, please contact above.
About Bawat
The development of an entirely new approach to ballast water treatment utilizing onboard waste heat to treat ballast water led to the founding of Bawat in 2011. A ballast water treatment system avoids disposal of untreated water in seas and harbors.
Bawat’s BWMS is a system that is simple, cost-effective, and sustainable, build on a zero environmental impact, using standard marine components. No filters, no chemicals no UV. And is the first to market a USCG/IMO Type Approval BWMS that uses pasteurization to treat ballast water in a one-pass process.
Bawat has built upon its innovative breakthrough, and now offers ballast water solutions to the maritime industry in three categories:
- Ship BWMS for Retrofit and New Builds
- Mobile containerized solution for multiple vessel usage in a port, on a ship or for rigs
- Ballast Water as a Service for contingency services in ports
Bawat is an engineer-driven company that is rooted in the tradition of Danish maritime innovation and with a deep maritime insight: www.bawat.com.