OXE Marine AB (publ) INTERIM REPORT 1 OCTOBER TO 31 DECEMBER 2019
Fourth quarter of 2019
- Net turnover of SEK 40.1 m (SEK 9.0 m)
- Operating Loss/EBIT of SEK -22.8 m (SEK -27.4 m)
- Result for the period of SEK -25.5 m (SEK -30.5 m)
- Cashflow for the period SEK 12.9 m (SEK -43.5 m)
- Earnings per share amounted to SEK -0.16 (SEK -1.04)
- Diluted earnings per share amounted to SEK -0.14 (SEK -1.04)
- OXE units sold: 142 (27)
January – December 2019
- Net Turnover of SEK 91.1 m (SEK 40.6 m)
- Operating Loss/EBIT of SEK -88.1 m (SEK -87.2 m)
- Result for the period of SEK -101.9m (SEK -108.2 m)
- Cashflow for the period SEK 46.3 m (SEK -9.2 m)
- Earnings per share amounted to SEK -0.80 (SEK -4.04)
- Diluted earnings per share amounted to SEK -0.68 (SEK -4.04)
- OXE units sold: 309 (157)
Significant events in the Fourth quarter
- Received subscription and guarantee commitments for exercise of warrants series 2019:1.
- Received approximately SEK 33.6 m through the exercise of warrants and planed for a directed share issue of approximately SEK 17.2 m.
- The board of directors resolved on a directed share issue of SEK 17.2 m.
- Received a significant order for the OXE300 with a value of approx. EUR 3 m from one of its distributors in the Americas.
- Formalised agreement with EIB that second tranche drawdown condition will include a directed issue.
Significant events after the reporting period
- Shareholders agreed to change the company name from Cimco Marine AB (publ) to OXE Marine AB (publ).
- OXE Marine AB (publ) announced name change, vision, mission and core values.
COMMENTS BY THE CEO
In the final quarter of 2019, OXE Marine achieved record sales of 142 units with net revenues of SEK 40 m, whilst achieving a 10% gross margin translating to a gross profit of SEK 4 m. Effectively, all completed units from production and inventory were sold out. Furthermore, I am confident that following the introduction of the OXE300, our gross margin will begin to move significantly higher. Our key financial objective to become gross margin positive by Q4 2019 has been met. Equally satisfying is the year on year increase in net revenues since we started production in September 2016.
I am also pleased with our order book, for unit deliveries in 2020, already now representing approximately half of our net revenue sales of 2019. I am therefore confident in meeting our 2020 financial target of net organic sales growth of more than 50% year on year. From 2020 onwards our reporting will focus on net revenues rather than unit sales as our product mix will become more sophisticated, which will include a higher percentage of revenues from spare parts, accessories and service kits – a natural increase especially as our OXE125-200 product range matures. OXE Marine has now delivered production units for government services in the US, Australia and Bangladesh – we are also working on various governmental projects which we hope will unlock further long-term sales contracts. The demand from the commercial sector continues to progress as expected, particularly for the OXE200.
Our expected start date of the OXE300 production in May 2020 remains unchanged and we are increasing our planning and execution resources. We will carefully ramp up production during Q2 and Q3, whilst closely monitoring product quality.
With regards to funding, we successfully completed the share warrant exercise as well as a directed share issue totaling SEK 50.8 m in October. Additionally, we have satisfied all conditions to enable us to draw down tranche B of the European Investment Bank (“EIB”) Loan facility of €4 m. Draw down is expected to be completed in March 2020.
OXE Marine is aware of the coronavirus epidemic and continues to monitor its potential impact on supply chain and sales in the affected regions.
Lastly, you will have noted that the company changed its name in January. One of the main reasons was to create consistency with our product brand. Our strap line “Engineering the Future” also gives an indication of the potential of our technology that will enable us to develop environmentally friendly products such as hybrids and fully electric variants. Additionally, it was an opportunity to develop what our vision, mission and core values are and communicating with all our stakeholders about who we are and what we do, how we intend to execute our mission and what we stand for. We are still a young company but with the collective support from our employees, consultants, customers, suppliers and investors, we will realise the full potential of our disruptive and innovative belt propulsor design.
Myron Mahendra
CEO - OXE Marine AB
For further information, please contact:
Myron Mahendra, CEO OXE Marine AB, +46 763-47 59 82, myron.mahendra@oxemarine.com
Anders Berg, Chairman of the Board of OXE Marine AB, +46 70-358 91 55, anders.berg@oxemarine.com
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ). Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail info@fnca.se.
OXE 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 February 21st, 2020, 15:00 CET.
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 ́s OXE diesel has a horizontally mounted engine as opposed to a traditional outboard with a vertically mounted engine.
