Eco Wave Power’s third quarter net loss slightly rises

Business & Finance

December 5, 2022, by Amir Garanovic

Swedish-Israeli wave energy company Eco Wave Power has released interim financial results 2022, marking a slightly higher net loss in the third quarter when compared to the same period a year earlier.

Eco Wave Power's Gibraltar wave energy array before decommissioning (Courtesy of Eco Wave Power)

For the nine months ended September 30, 2022, Eco Wave Power’s revenues were $26,000 compared to $31,000 in the same period last year, with revenue in both periods related to feasibility study services in Asia.

The company is building out a pipeline of ancillary technology services that it may provide to its customers and other parties, such as other companies and research institutions, in addition to its proprietary wave energy converter (WEC) technology.

According to Eco Wave Power, these services currently include feasibility studies for potential clients of WEC technology.

Net loss for the company during the period was $2 million, or $0.05 per basic and diluted share, compared to a net loss of $1.8 million, or $0.05 per basic and diluted share in the same period last year.

Eco Wave Power’s operating expenses were up 32% in year-over-year comparison, rising to $2.8 million in 2022.

Research and development expenses were $755,000, compared to $516,000 in the same period last year.

The costs, according to the company, increased due to a non-recurring loss of $278,000 pertaining to a disposal of the floater mechanisms of the Gibraltar wave energy array, due to the relocation of the Gibraltar conversion unit to the Port of Los Angeles.

The floater mechanisms of the Gibraltar power station were sent to steel recycling, while the conversion unit was fully overhauled and refurbished and shipped to Los Angeles. Eco Wave Power intends to develop and supply new and upgraded floaters for its planned pilot in AltaSea’s premises in the Port of Los Angeles, to optimally meet the local marine conditions, the company confirmed.

Eco Wave Power ended the period with $10.8 million in cash and cash equivalents and short-term bank deposits as of September 30, 2022, compared to $14.6 million as of December 31, 2021.

Inna Braverman, the founder and CEO of the company, said: “Eco Wave Power is expeditiously advancing with its core projects in Israel, the United States, and the European Union, while simultaneously operating towards the creation of legal frameworks and policies meant to accelerate the implementation and adoption of the wave energy sector.

“It is interesting that once Gibraltar adopted legislation and enabled implementation of our wave energy technology, it served as an immediate catalyst for neighboring jurisdictions to do the same. Portugal, Spain and Morocco are all countries that neighbor Gibraltar and have all entered different agreements with Eco Wave Power for the promotion of our pioneering technology in their respective countries.

“I have always commented that one of the most significant barriers for the commercialization of wave energy is lack of wave energy related regulations and legislation, and the case of Gibraltar makes me extremely optimistic, as I am seeing that a good project is ’contagious’, and once we execute a project in one country, other countries will follow, thereby slowly removing this barrier.”