Minesto Reports Early Tech Writedowns; But Strong Cash Position
Swedish marine energy developer Minesto has reported net loss for 2019 of close to SEK 126 million ($12.5 million), mostly related to one-off writedowns of previously capitalised technology development.
Namely, Minesto decided to write down technology development costs attributed to earlier years, since it ‘differs significantly’ from its technology today, which is focused on DG500 and DG100 marine power plants.
The company generated 2019 revenue of SEK 40.1 million ($4 million), against SEK 39 million ($3.9 million) consisting mainly of capitalised work on own account of SEK 35.7 million ($3.5 million).
The negative result is also attributable to business development and administration related to technology development and includes, among other things, personnel costs, rents and services.
At year-end, capitalised development costs amounted to SEK 165 million, compared to SEK 233 million in 2018.
However, Minesto’s cash flow for 2019 amounted to SEK 51 million, versus negative SEK 44 million. Equity at the end of the reporting period amounted to close to SEK 400 million, compared to some SEK 304 million in 2018.
In 2019, the company was granted just over SEK 200 million in public development funds for its projects in the Faroe Islands, Wales and France, and also raised approximately SEK 190 million during the year through a warrants program and two issues of units. Together approximately $38.7 million
“At the beginning of 2020, Minesto holds a stronger cash position than ever. This means that we can increase the company’s commercial activity, with the goal of entering into further customer collaboration arrangements and secure project financing for the expansion of larger marine energy production arrays,” said Dr Martin Edlund, CEO of Minesto.