INTERIM REPORT 1 JANUARY – 31 MARCH 2019

INTERIM REPORT 1 JANUARY – 31 MARCH 2019

First quarter of 2019 (January – March 2019) 

-      Net Turnover of SEK 3.6 million (SEK 8.3 million)

-      Operating Loss/EBIT of SEK -27.2 million (SEK -19.8 million)

-      Result for the period of SEK -33 million (SEK -29.5 million)

-      Cashflow for the period SEK 9 million (SEK 75.9 million)

-      Earnings per share amounted to SEK -1.12 (SEK -1.13)

-      OXE units sold: 12 (40)

Significant event in the first quarter 

-      Cimco Marine AB initiates written procedure to amend certain terms in its up to SEK 200 million bonds in preparation for a SEK 150 million rights issue of units.

-      Cimco Marine AB proposes a rights issue of approximately SEK 154 million and enters into bridge loan agreement of up to SEK 55 million.

-      Notice for an EGM to be held on 8th March 2019.

-      Cimco Marine AB obtains the bondholders’ approval regarding amendments of the terms and conditions for its up to MSEK 200 bonds.

Significant event after the reporting period 

-      Successfully concludes rights issue for SEK 101.5 million

-      Launch of OXE200 tropical variant

COMMENTS BY THE CEO

Our liquidity situation became quite strained around October last year and limited our spending on working capital whilst deferring our investment programme. Nonetheless, the company averted a credit crunch by organising a deeply discounted rights issue for 101.5MSEK. This was successfully concluded at the end of April. In February, after announcing the rights issue, we secured interim funding of around 55MSEK which was fully repaid, together with interest, after concluding the rights issue. I now look forward with confidence in meeting our key objectives for 2019.

Our sales for the quarter was 12 units. This was in line with our expectation as customer orders were mainly focussed around the OXE Diesel 200 tropical variant, which went into production in May 2019. We are nevertheless working on a number of projects that could yield significant sales orders for the OXE Diesel 150s. I am confident, based on our sales and orders to date, we will meet our targets for 2019.

During the first quarter of 2019, the company managed to produce 35 units. The reduced level of production is due to several factors which included rectifying certain defective parts in some of our production engines. However, the main reason for the slowdown was due to conserving our cash resources whilst the company organised alternative funding to meet its operational and investment needs.

We are progressing with our Bison project for the OXE Diesel 300 in accordance with our plan with the aim of a production start around May 2020.

For further information, please contact:                          

Anders Berg, Chairman of the Board of Cimco Marine AB, +46 70-358 91 55, anders.berg@oxe-diesel.com

Andreas Blomdahl, CEO Cimco Marine AB, +46 431 44 98 99, andreas.blomdahl@oxe-diesel.com

Myron Mahendra, CFO Cimco Marine AB, +46 763-47 59 82, myron.mahendra@oxe-diesel.com

www.oxe-diesel.com

Certified Adviser

Västra Hamnen Corporate Finance AB is Certified Adviser for Cimco Marine AB.

Contact details to Västra Hamnen: tel. +46 40 20 02 50, e-mail. ca@vhcorp.se                                        

Cimco Marine AB (publ) is obligated to make this information public pursuant to the EU Market Abuse Regulation. The information was provided by the contacts above to be submitted for publication on May 31st 2019, 07:30 CET.

About Us

OXE Marine AB (publ) has, after several years of development, constructed the OXE Diesel, the world´s first diesel outboard engine in the high-power segment. OXE Diesel has a unique belt driven propulsion system that allows a hydraulic multi-friction gearbox to be mounted. This means that the engine can handle significantly higher loads than a traditional outboard engine. OXE Marine´s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.