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Year-end report for the period 1 January – 31 December 2019

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EWPG Holding AB (publ) experiences increased demand for its solutions

In the last quarters, we have taken further steps to accelerate the pace and width of our expansion, by collaborating with strong partners such as EDF Renewables and reliable subcontractors, such as Siemens.

 

Significant events and comments to the financials

Numbers in parentheses refers to outcomes during the corresponding period of the previous year.

 

Fourth quarter of 2019

  • Revenues (mainly grants) of SEK 1.0 million (0).
  • Net earnings of SEK -4.4 million (-2.4). Net earnings excl. IPO related costs of SEK -3.8 million.
  • Earnings per share of SEK -0.1 (-22).
  • As of 31 December 2019, cash and cash equivalents amounted to SEK 110 million (2.6).
  • Eco Wave Power finalized parts procurement for the Jaffa Port conversion unit.
  • In November, Eco Wave Power entered the assembly phase of the Jaffa Port project. The Jaffa Port power station is partially co-funded by The Ministry of Energy of Israel and by EDF Renewables, as part of the Joint Venture agreement entered between the parties.
  • Eco Wave Power received the third payment as part of the grant it secured from The Ministry of Energy of Israel (Office of the Chief Scientist).
  • The board and the Company’s CFO visited the Jaffa Port installation site in Israel.
  • Eco Wave Power finalized pre-feasibility studies and representatives from Eco Wave Power attended an event called “demo day”, in Lisbon Portugal and presented the results of EWP’s pre-feasibility studies for several ports in Portugal. According to the initial studies, the ports are deemed suitable for the installation of the EWP technology. In parallel, members of the Eco Wave Power team have visited the above-mentioned ports, to agree on the next steps required to enable technology implementation of the ports’existent infrastructures.
  • In December, EWP was awarded the prestigious United Nations Global Climate Action Award at COP25 in Madrid. During COP25, Eco Wave Power met with Minister John Cortes, Minister of Health and Environment of Gibraltar.
  • Eco Wave Power installed a spotter buoy in proximity to its’ wave energy power station in Gibraltar. The spotter measures wave height, period and direction, as well as the wind speed in the implementation site.
  • According to a new study by UMT University in Malaysia, the hydraulic conversion mechanism, as the one used by Eco Wave Power, is the most appropriate Power Take Off (PTO) mechanism, for converting wave energy into stable electricity, especially for the wave activated energy conversion system. Hydraulic PTO system has significant advantages because of its excellent characteristics, i.e., well-suited to low-frequency and large power density waves. The hydraulic PTO system uses incompressible fluid, which results in higher efficiency. It was reported in the literature that the efficiency of a hydraulic PTO system in a typical Wave Energy Conversion (WEC) system could be achieved up to 90%. Moreover, the hydraulic PTO system also can be effectively used to control the WEC device according to the ocean wave condition in order to maximize energy absorption.
  • Eco Wave Power is gaining awareness and received positive coverage by BBC, I24NEWS, Liberation France, Forbes and The Economist.

 

Events after the reporting date

  • Eco Wave Power has taken the next steps towards commercialization of its wave energy technology. The company has finalized the assembly of the hydraulic energy conversion unit for its Jaffa Port project and entered the electrical assembly phase, which is executed by Siemens.
  • Inna Braverman (CEO of EWP) had a meeting with Mr.João Galamba the Secretary of Energy of Portugal, and with representatives from EDP (the Portuguese National Electric Company) regarding Eco Wave Power’s potential projects in the above mentioned Portuguese ports.

 

Full year of 2019

  • Revenues (mainly grants) of SEK 1.7 million (0).
  • Net earnings of SEK -18 million (-8).
  • Earnings per share of SEK -0.9 (-75).

 

A word from the CEO

Since the beginning, we have methodically built Eco Wave Power with the aim of becoming a global company with potential to change the energy landscape.

In the last quarters, we have taken further steps to accelerate the pace and width of our expansion, by collaborating with strong partners such as EDF Renewables and reliable subcontractors, such as Siemens.

In Gibraltar’s power plant, we reached an important milestone as we successfully carried out and completed long-term tests (carried since 2016) of our wave energy modules, which were enabled due to an effective collaboration with The Gibraltar Ministry of Environment and the local power company, GibElectric and with co-funding from the European Regional Development fund and Horizon2020. Among the conducted tests, we have examined the durability of our equipment during storms and tested our storm-protection mechanism. In addition, we have proved that our technology does not harm the environment and that wave energy can be safely connected to the electrical grid.

The long-term tests and continued operation are a confirmation that our power plants achieve the desired durability and stable electricity production with a reliable and renewable baseload power. 

This marked the start for Eco Wave Power to begin preparing the next power plant. Together with our partners, we are now focusing on the construction of the Jaffa Port power plant. Our engineering team and sub-contractors have completed the tasks of planning, parts procurement for the conversion unit and most recently finalized the assembly of the hydraulic section of the conversion unit. Soon, where there few months ago was a small-scale off grid R&D site, there will be a wave energy power plant that will produce clean and renewable electricity and will be connected to the grid. This will be Eco Wave Power’s second grid connected power station and will reinforce Eco Wave Power’s position as a pioneer in the wave energy sector.

We are also entering 2020 with a large project pipeline, which are an integral part of our on-going global expansion plan.

In the same time, the increased interest in the Eco Wave Power technology, have generated the need for operational focus in both management and organization, which is why we are currently expanding our team, to enable us to support the newly gained interest and the licensing processes. The new composition will give us the best possible conditions for the rapid growth we have ahead of us.

The planned expansion and project delivery will be enabled due to the reinforced company’s cash position and added strong European institutional investors, such as Skandia Fonder and AP4, which have participated in the company’s public offering in mid-2019.

With a strengthened cash position and very strong partners, we now have better conditions than ever to continue to build Eco Wave Power to become a leading global renewable energy company.

Inna Braverman

CEO

For the full interim report, please click here.

 

About EWPG Holding AB (SE0012569663)

EWPG Holding AB (publ) (“Eco Wave Power”) is a leading onshore wave energy technology company that developed a patented, smart and cost-efficient technology for turning ocean and sea waves into green electricity. Eco Wave Power’s mission is to assist in the fight against climate change by enabling commercial power production from sea and ocean waves.

EWP is recognized as a “Pioneering Technology” by The Ministry of Energy of Israel and was labelled as an “Efficient Solution” by the Solar Impulse Foundation. Furthermore, EWP’s project in Gibraltar has received funding from the European Union Regional Development Fund and from the European Commission’s HORIZON2020 framework program. The company was also recently recognized by the United Nations in receiving the “Climate Action Award”, which was granted to the company during COP25 in Madrid, Spain.

Eco Wave Power was founded in 2011 and has operations in Sweden, Gibraltar, Australia, Mexico, China and Israel. The major Swedish shareholders in EWPG Holding AB are AP4 and Skandia Fonder. The Eco Wave Power share (EWP, EWPG) is traded on Nasdaq First North Growth Market.

Read more about Eco Wave Power at: www.ecowavepower.com.

FNCA Sweden AB is Certified Advisor of the Company (+46 8-528 00 399, info@fnca.se).

 

This information is information that the Company is required to disclose under the EU Market Abuse Regulation. The information was provided by the contact persons below for publication on 28 February 2020 at 08.00 CET.

 

For more information

Yair Rudick, Business Development and Strategy
Yair@ecowavepower.com
+972 350 940 17

Andreas Kihlblom, CFO
andreas@ecowavepower.com
+46 (0)8 420 026 94

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