CONTINUED DELIVERIES OF HEATPOWER 300 AND TARGETED NEW SHARE ISSUE TO NEW AND EXISTING OWNERS
During the quarter, two HeatPower 300 systems were commissioned at NEO Group's facility in Lithuania, and four out of a total of six ordered systems were delivered to HD Hyundai Heavy Industries' shipyard in South Korea. Climeon now has a well-functioning supply chain that enables a rapid ramp-up of production and deliveries. A targeted new share issue, which provides the company with approximately 50 million SEK before transaction costs, was successfully completed shortly after the end of the quarter. Climeon has continued to implement cost-saving measures to better align operations with the current phase of the company.
JULY - SEPTEMBER
IMPORTANT EVENTS
JANUARY - SEPTEMBER
A word from our CEO:
CONTINUED DELIVERIES OF HEATPOWER 300 TO SOUTH KOREA AND NEW SHARE ISSUE STRENGTHENS CASH FLOW BY APPROXIMATELY 50 MILLION SEK
During the quarter, we continued our dialogues with both new and existing customers as part of our commercialization of the HeatPower 300 product platform. We are currently witnessing significant and growing interest in our product, which was particularly evident during our participation in one of the world’s largest maritime exhibitions, SMM in Hamburg in September.
It is encouraging to see that more and more shipping companies are increasingly specifying the ORC technology, which is the foundation of HeatPower 300, in their specifications to shipyards for new vessels. We are engaged in concrete discussions with shipyards in both China and South Korea, the world’s two largest shipbuilding countries, regarding the integration of our technology into new ships. In both countries, we have local partners who provide valuable local knowledge, contacts, and extensive experience from their respective shipbuilding industries. Additionally, we are having specific discussions with shipowners in Europe regarding the installation of our technology on existing vessels.
Interest in the Energy and Industry sector remains strong, with ongoing discussions about various industrial and geothermal projects, primarily in the European market. During the quarter, we successfully commissioned the two HeatPower 300 systems at NEO Group's facility in Lithuania, as planned.
During this quarter, we delivered the first four HeatPower 300 systems out of a total of six for the container ships being built by HD Hyundai Heavy Industries on behalf of Maersk. The remaining two systems will leave Kista before the year-end, followed by installation and commissioning in South Korea next year. The two systems designated for installation on two existing container ships are scheduled to be delivered from us before the year-end and will be installed on two existing vessels in the coming year.
Our deliveries this year demonstrate that we currently have a well-functioning supply chain that enables us to scale up production as needed. Regarding our product platform, we continue ongoing discussions with both existing suppliers and potential new ones to enhance the cost-effectiveness of our product platform.
During the quarter, we also conducted a targeted new share issue. We were grateful to see both new and existing investors show their support by subscribing for shares. The new share issue strengthens our cash flow by approximately 50 million SEK before transaction costs. These funds will be used for the continued commercialization of HeatPower 300 and to finance deliveries of both existing and anticipated orders. We are naturally appreciative of the trust shown to us by both new and existing shareholders.
In parallel with this, we have also implemented ongoing cost-saving measures across the company. Some of these have already yielded results, while others will have full effect in 2025. We have, among other things, reduced the number of employees and consultants and cut our other ongoing expenses. At present, we will not be replacing our CFO or our sales director for the Energy and Industry segment. I will take on the latter role in addition to my responsibilities as CEO.
We have a growing market and significant interest from customers, as well as global, market-leading reference customers for our new product and a well-functioning supply chain. We will now continue our efforts toward the commercialization of HeatPower 300 with an even more cost-effective organization to achieve profitability.
Lena Sundquist, CEO, Climeon
