Metacon: Milestone payment of ~28 MSEK strengthens liquidity

Metacon announced on Friday that it has received a milestone payment of 2.6 MEUR (approx. 28 MSEK) from Motor Oil Hellas regarding the ongoing 50 MW electrolysis project in Greece. While the payment supports near-term liquidity, it was already included in our cash runway assumptions. Therefore, it does not change our estimates but reinforces our positive view of the company's ability to execute on projects.

Strengthening liquidity and delivery capability

The ~28 MSEK payment is tied to the delivery of the majority of the plant's power electronics, including transformers and rectifiers, following approved Factory Acceptance Tests (FAT) by the customer. This follows the earlier delivery of ten 5 MW electrolyzer stacks for the Corinth plant. With the remaining electronics units due in March and assembly of key subsystems at Metacon's Patras factory set to begin shortly, the project’s execution appears to be moving steadily forward.

As we have stated before, large projects such as the Motor Oil project, typically require significant working capital. This is partly because Metacon’s customers often require guarantees backed by locked capital, and partly because Metacon generally needs to pay its suppliers before receiving payments from customers. This substantial capital commitment is particularly difficult given that Metacon is not yet profitable, which is a prerequisite for access to regular bank financing. As a result, when Metacon secures large orders, the company typically needs to seek alternative financing solutions, such as temporary project financing, which is usually expensive. Therefore, we view it positively that Metacon has received its next milestone payment according to plan, which strengthens the company's cash runway as it continues to execute its order backlog.