Investor Presentation • May 3, 2021
Investor Presentation
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New contract in Greece
Phase 1 Statkraft completed
Product improvements
MWP collaboration
Several new opportunities
Operations and business developments
Ocean Sun has signed an agreement with MP Quantum Group ("MP") to develop floating solar based on Ocean Sun's proprietary technology in Greece and the Republic of Cyprus.
MP Quantum Group is a solar energy developer founded and owned by the Alafouzos family to execute on the family's strategic interest within the renewables sector and to become a major player in the shift towards green electricity.
The Alafouzos family holds a majority position in Okeanis Eco Tankers listed on the Oslo Stock Exchange. The family also owns SKAI Media Group, one of Greece largest media houses and the morning newspaper Kathimerin.
Greece and The Republic of Cyprus have excellent solar irradiance, vast water surfaces, and ambitious governmental goals for a green energy transition, making them excellent markets for floating solar.
The license agreement allows MP to develop floating solar using Ocean Sun's proprietary technology in the region and sets the contractual framework for such projects. The intention of the parties is to develop utility scale floating solar, both on inland reservoirs and for ocean applications. A comprehensive plan for penetration of the market has been developed and MP is actively working with permits for larger projects. First phase of the collaboration is a pilot system, for which permits shall be acquired within 2021. In total, 350+ MWp shall be developed under the contract over a 5 years period.
Ocean Sun and Statkraft have completed the first phase of its 2 MWp project on the Banja HPP in Albania, during which one floater of 68.8m diameter and a power output of 0.5 MWp was constructed. The installation is Ocean Sun's first using its new design consisting of a single pipe system and is almost twice the size of any previous installation.
The successful installation is an important demonstrator of Ocean Sun's design and competitive advantages, both for the hydropower community and for other potential installers of floating solar. Approximately 1600 panels were deployed during two effective days of installation, a record-breaking speed that demonstrates Ocean Sun's claim regarding fast and easy installation.
Phase two of the project entails the installation of three additional floaters of equal size. Ocean Sun intends to moor the four rings tight together forming a diamond shaped cluster. Such mooring layout enables good area utilization and high energy density while the individual floaters can share mooring and anchoring providing further cost benefits.
The first of four planned floaters for Statkraft on the Banja reservoir in Albania. The floater is ~3,700 m2 and has an installed power of 0.5MWp.
As part of a consortium with Fred Olsen, Innosea, Plocan and ITC, Ocean Sun has received EIC funding to test its technology in offshore conditions of the coast of Gran Canaria.
The project started in January 2021 with development of a purpose-built design that can withstand the extreme conditions with up to 10m waves at the location. The design features a double ring system and a larger freeboard. During the following months, the design will be tested in the basin laboratory of Sintef Ocean and verified by both Innosea and DNV as an independent certification body. Construction of the demonstrator is expected early 2022.
The basin trials along with the validation and certification by Innosea and DNV are important activities to increase the bankability of Ocean Sun's solution for non-sheltered deployments near-shore, offshore and on larger lakes.
Being able to deploy the technology in non-sheltered locations enables powering islands and costal communities with highly competitive renewable energy. It also enables Power to X opportunities such as the production of hydrogen and fresh water (desalination).
Ocean Sun has recently entered a collaboration with the Norwegian company Marine Water Production ("MWP"), to power their floating desalination vessels with solar power. Projects in the Middle East may be the first applications within 24 months.
Illustration of Ocean Sun's floating solar powering MWP's desalination vessel. The plant is covering approximately 13,6 hectares/136.000 m²
Maintain IP
35 Protect & Continuous
Development Global Partnerships Large customers Revenue from license & partnerships
For accounting principles, please refer to Annual report 2020.
Total revenue amounted to NOK 1.6 million in Q1'2021 and relates to R&D contribution from the BOOST project as well as from the Research Council of Norway.
Higher spend on patenting as patent family two entered national phase in many countries, along with recruitment fees and a higher audit fee for 2020 resulted in higher spend on Other Operating Expenses during Q1'2021.
Personnel expenses are the main cost driver. In Q1 as well as large parts of 2020 the personnel force consisted of 6 employees in Norway as well as 2 employees in Singapore and China, which costs are included in Other OPEX.
| Unaudited | ||
|---|---|---|
| NOK'000 | 31.03.2021 | 31.12.2020 |
| Assets | ||
| Office equipment | 51 | 56 |
| Investments in subsidiaries | 280 | 280 |
| Total fixed assets | 331 | 336 |
| Accounts receivables |
1 172 | - |
| Other receivables | 6 848 | 7 326 |
| Cash and cash equivalents | 94 341 | 94 951 |
| Total current assets | 102 361 | 102 277 |
| Total assets | 102 692 | 102 613 |
| Equity and liabilities | ||
| Total equity | 96 844 | 100 166 |
| Accounts payable | 623 | 639 |
| Public duties payable | 265 | 590 |
| Other short-term liabilities | 4 960 | 1 218 |
| Total current liabilities | 5 848 | 2 447 |
| Total liabilities | 5 848 | 2 447 |
| Total equity and liabilities | 102 692 | 102 613 |
Cash and cash equivalents amounted to ~94 million as per 31.03.2021, of which NOK0.8 million was restricted cash.
Equity ratio amounted to 94.3% and the Company had no interest-bearing debt. Ocean Sun is well capitalized with available liquidity to support future growth.
Other receivables included receivables for material purchased on behalf of customer as well as accrued revenue related to R&D projects.
Other short-term liabilities consisted of provisions for personnel expenses as well as prepayment of the EIC grant related to the BOOST project.
For accounting principles, please refer to Annual report 2020.
| Cash flow statement | ||
|---|---|---|
| NOK'000 | Unaudited 01.01- 31.03.2021 |
01.01- 31.12.2020 |
| Net income | (3 322) | (10 524) |
| Depreciation | 5 | 15 |
| Change in accounts receivables | (1 172) | 11 |
| Change in accounts payables | (16) | (119) |
| Change in other operating assets | 3 895 | (4 349) |
| Cash flow from operating activities | (610) | (14 966) |
| Investment in subsidiaries | - | (250) |
| Office equipment | - | (34) |
| Cash flow from investing activities | - | (284) |
| Share capital increase | - | 102 017 |
| Costs associated with share capital increase | - | (6 326) |
| Cash flow from financing activities | - | 95 691 |
| Net cash flow in the period Cash and cash equivalents at beginning of |
(610) | 80 441 |
| period | 94 951 | 14 510 |
| Cash and cash equivalents at end of period |
94 341 | 94 951 |
| For accounting principles, please refer to Annual report 2020. |
Cash flow from operations amounted to -0.6 million NOK in Q1'21. The negative result was offset by the prepayment for BOOST.
Total cash and cash equivalents as per 31.03.2021 amounted to ~NOK 94 million. The cash position of the company is sound.
| Changes in equity (Unaudited) | ||||
|---|---|---|---|---|
| NOK'000 | Share capital | Share premium |
Uncovered losses |
Total |
| At 1st of January 2021 | 450 | 128 023 | (28 307) | 100 166 |
| Profit/Loss for the period | - | - | (3 322) | (3 322) |
| At 31 March 2021 |
450 | 128 023 | (31 629) | 96 844 |
For accounting principles, please refer to Annual report 2020.
Share information
Ocean Sun is since 26th of October 2020 listed on Euronext Growth Oslo under the ticker OSUN.
The listing price for Ocean Sun was NOK 18 kr per share and the price as of 31 March 2021 was NOK 33.5 kr per share.
The Company has 44,986,200 outstanding shares. The share capital as of 31st of March 2021 amounted to NOK 44,986 kr.
Børge Bjørneklett, CEO, +47 90195778 Karl Lawenius, CFO, +47 45633881
| Event | Date |
|---|---|
| Q1 report | 03.05.2021 |
| AGM | 20.05.2020 |
| Q2 Report/half year | 19.08.2021 |
| Q3 Report | 09.11.2021 |
| Q4 report | 10.02.2022 |
WWW.OCEANSUN.NO
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