Eco Wave Power Global AB (publ) Q3 2024 Earnings Call Transcript

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November 25, 2024

There are 3 speakers on the call.

Operator

Good morning, and welcome to the Ecowave Power Third Quarter twenty twenty four Earnings Call. At this time, all participants are in a listen only mode. Please note this conference is being recorded. I will now turn the conference over to your host, Aaron Yehuda, CFO at Ecowave. The floor is yours.

Speaker 1

Thank you for the introduction and thank you all for joining us for our quarterly webcast. Let's dive in some updates. Over the first nine months of twenty twenty four, Ecowave's Power has remained committed to prioritizing cost efficiency and I'm pleased to share some positive results. From the second quarter to the third quarter of this year, we successfully reduced our overall expenses by 10% quarter over quarter. Here's how we achieved this.

Speaker 1

General and administrative expenses decreased by USD 63,000. Research and development expenses were reduced by USD 29,000. These savings were driven by lower cost of directors and officers insurance and reduced consulting fee. Additionally, we saw an increase in grants during the third quarter, which further supported our cost saving efforts. These measures led us to a $73,000 reduction in our operating loss quarter over quarter.

Speaker 1

Also on a positive note, EcoRep Power entered into an agreement with OpenIron Bank to facilitate the buyback process and in September 2024, the company commenced the repurchases of its ADSs and plans to continue such repurchase during the open trading window in November and December 2024. By the end third quarter, we maintained a solid financial position with $7,040,000 in cash and short term bank deposits. This reflects only a modest $447,000 decrease from Q2 twenty twenty four. To summarize, we are proud to report that even as we are making significant progress across all of the company's key projects in Israel, Los Angeles, Taiwan and Portugal, we have also achieved notable cost reductions that reflects our commitment to both operational excellence and strategic growth. That said, I'll now hand it over to Ina Bradman, Chief Executive Officer of EcoRep Power to share more about our progress and outlook.

Speaker 1

Nina, please take it from here.

Speaker 2

Thank you, Aron. Dear shareholder, as we reflect on the first nine months of 2024, I'm proud to share the significant strides EcoHealth Power has made in both financial management and project execution. Our focus on operational efficiency has enabled us to maintain a strong cash position of $7,040,000 in cash and short term bank deposits, while reducing operating expenses by 10% compared to the previous quarter. This year has been marked by remarkable progress across all our projects. In Israel, the EWP DF1 project at the Port Of Jaffa achieved 0% downtime for the very first time in June 2024, a testament to the reliability of our technology.

Speaker 2

By September, the project reached 83% of its energy generation target, a 27% improvement over just three months, suppressing the average annual performance of our first grid connected project, which was built in Gibraltar. The Echo X Power project was built in collaboration with EDF Renewables IL, supported by the Chief Scientist of the Ministry of Energy, which recognized the company's technology as pioneering technology and Tel Aviv Yacom Municipality. In this unique project, for the very first time, electricity generated from SeaWave is supplied to the National Grid, a historic milestone in Israel's renewable energy journey. On December 5, we will have an official opening ceremony of Israel's First wave energy power station in Jaffa Court. This groundbreaking global project combines innovation, sustainability and the fight against climate change.

Speaker 2

The event will include a formal cut the ribbon ceremony by Tel Aviv Mayor Ron Houdail followed by a reception at Warehouse 2 in Jaffa Port with senior energy officials, investors and strategic partners. The launch of Israel's First wave energy power plant is more than just a technological achievement. It's a powerful statement about the future we envision. This project at Jacopo represents a historic milestone in the global renewable energy journey, proving that Wave Energy can be viable, clean and consistent source of electricity. We are proud to collaborate with EDF Renewables IL, Tel Aviv Municipality and Nazarim to place Israel at the forefront of wave energy innovation.

Speaker 2

Together, we are creating a new wave of possibilities in the fight against climate change. In The United States, we secured a major regulatory milestone, the final nationwide permit from the U. S. Army Corps of Engineers for our first wave energy project at AltaC premises in the Port Of Los Angeles. This groundbreaking project will be the first onshore wave energy installation in The U.

Speaker 2

S. With installation set for completion by the end of Q1 twenty twenty five. These achievements also fulfill key milestones under our core investment agreement with Shell MRE announced in April 2024, which is expected to enhance our fourth quarter revenues. Our global reach continues to grow with new opportunities. This year, we signed our first turnkey wave energy deal in Taiwan, a pivotal step in our strategy to sell wave energy project to third parties.

Speaker 2

This agreement has sparked interest from other global players eager to replicate this success, and we believe this model will significantly boost our market presence and revenue potential. We anticipate that securing three to four similar deals will position EcoWave Power as the first profitable wave energy company worldwide, a game changing achievement for an industry often used as resource intensive. To support this growth, we have expanded our leadership and engineering team, including appointing a Vice President of Engineering and forming a U. S. Based sales and business development team to drive further expansion.

Speaker 2

We are also making strides to strengthen our capital structure through our American Depository Shares Reverters Program. Initiated in September 2024 in collaboration with Oppenheimer, this program is set to continue during the open trading window. We see this initiative as a strategic step toward enhancing shareholder value, while providing the flexibility to execute on key priorities. On the legislative front, the introduction of the Marine Energy Technologies Acceleration Act by our representatives Nanette Beragon and Susan Bonamici represents a major milestone for the marine energy sector. This proposed legislation would allocate SEK 1,000,000,000 to accelerate the commercialization of marine energy technologies, providing vital funding for demonstration projects, research and workforce development.

Speaker 2

We are encouraged by Representative Bergel's support for our California installation and are optimistic that the pathition recognition of the importance of renewable energy will continue to grow. While uncertainty exists around the Inflation Reduction Act under the incoming administration, we remain confident that states like California will lead the way in advancing clean energy initiatives. As we close out twenty twenty four, EcoWave Power is steadfast in its mission to revolutionize the renewable energy landscape. Our focus remains on executing strategic initiatives, driving global growth and delivering sustained value for our shareholders. Thank you for your trust and unwavering support as we continue on this journey.

Operator

Thank you very much. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

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Earnings Conference Call
Eco Wave Power Global AB (publ) Q3 2024
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