Eco Wave Power Global AB (publ) Q4 2023 Earnings Call Transcript

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April 2, 2024

There are 2 speakers on the call.

Operator

Greetings. Welcome to the Ecowave Power 4th Quarter 2023 Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Please note this conference is being recorded.

Operator

I will now turn the conference over to your host, Ina Braverman. Ma'am, you may begin.

Speaker 1

Thank you, and thank you everybody for joining today. The economic landscape in 2023 was marked by unpredictability and numerous challenges. At this year's start, both consumers and economists prayed for possible recession. When faced with such challenges, we at Eco Waste Power understood that we must adapt and learn how to navigate through the turbulence and have learned over the past years that adaptability is a cornerstone of success in business, especially in today's rapidly changing economic landscape. Our adaptation process worked and we were able to demonstrate our resilience by increasing our revenues by 10 76%, not including funds received from grants and other sources and decreased our net loss by 36%, ending the year with US8.4 million dollars in cash and deposits.

Speaker 1

Although the company's burn rate of cash has decreased substantially, we were able to achieve significant milestones such as the grid connection of our Israeli project, which already sent the 1st megawatt hours of clean electricity from the wave to the Israeli National Electrical Grid, marking the first time in history of Israel that Wave Energy was officially connected to the National Electrical Grid. In January 2024, we have also entered an investment agreement with Shell MRE for our 1st U. S. Project at the Port of Los Angeles. According to which Shell will participate and co fund the development of Eco Waste Power's first project in the United States.

Speaker 1

The agreement was entered by Shell Technology Marine Renewable Program, which is an R and D group pursuing the mission of finding, screening, testing and developing marine renewable energy technologies to achieve more value with lower emissions and help build the critical energy infrastructure for the growth of the blue economy. For the terms of the agreement, Shell will contribute 50% of the production, installation and scheduled maintenance cost of the Wave Energy Pilots Station with scheduled statements in line with key project milestones. The project is expected to be up and running during 2024 this year. This is the 2nd collaboration between Eco Waste Power and Shell MRE, with our first collaboration being in the form of conducting a comprehensive feasibility study for Shell aimed at identifying the top locations for commercial onshore wave energy stations on the U. S.

Speaker 1

Coastline and worldwide. The 3 months in-depth feasibility study, which now has been completed, has shown favorable conditions for clean energy production in multiple locations in the U. S. And globally. Harnessing the power of the ocean waves is a crucial step in reshaping the renewable energy landscape to meet the net zero goals we must reach if we want to save our planet.

Speaker 1

We are pleased to partner with Shell to bring Wave Energy to life in the United States. This partnership not only underscores our commitment to sustainable innovation, but also signifies a pivotal moment as we move towards a cleaner, greener future. Our latest achievement during March 2024 is the securing of the final license for our 1st commercial scale project in Portugal that is expected to be finalized by March 2026 in 2 years. We are incredibly excited to be moving forward in transforming an unused marine structure in the city of Porto to a source of clean electricity. Porto Bell's 11 15 miles coastline presents a massive market for the ocean energy industry.

Speaker 1

We believe that this landmark project with this landmark project, Portugal will serve as a global example of the power of wave energy. In addition to environmental benefits, the station will provide a boost to Portugal's economy, adding many local jobs over the coming years. Lastly, we would like to update that we have also reinforced our financial position by providing feasibility studies and project planning engineering services for Shell, Chevron, Brogan Associates and JESA Group in addition to applying for and securing multiple grants such as our recently announced Innovate UK grant with leading UK universities, Toshiba and other prestigious groups. While Eco Waste Power had an eventful year in the financial market, clean energy stocks, including waste stock did not perform well as we believe high interest rates and lagging efforts to combat line exchange have impacted the sector. According to CNN, Plaque Power shares have slipped 63% this year.

Speaker 1

Enphase Energy shares have plunged 60%, SolarEdge Technologies have declined 71% and NextEra Energy has reached 29%, showing that even the largest and most resilient energy companies have taken a hit by the financial situation in 2023. Even considering the above, we strongly believe that with the recovery in the economic landscape and other positive initiatives such as the Biden Administration Inflation Reduction Act, which according to the Bank of America announced more than 2.70 new clean energy projects with total value of US132 $1,000,000,000 in private investments. There will be a significant opportunity for investors in the renewable energy market. We believe that renewable energy and Wave Energy in particular is a significant part of the world's future and offers a significant opportunity for decarbonization combined with profitability. In fact, Peter Kuehl, Director of Sustainable Investments at Earth Equity Advisors, that manages a portfolio that focuses on stocks in industries from alternative energy to battery technology to grid transportation sees the current track in clean energy stocks as a buying opportunity for investors.

Speaker 1

I would like to finish by saying that as the Founder and CEO of Eco West Power and one of the largest shareholders of waste stock, I'm disappointed by the performance of the waste stock on the financial market. Currently, the company's market cap is below its cash position. However, at the same time, I would like to say that since the incorporation of the company, none of the founders of the company have sold any shares as we believe strongly in the company. And I'm very pleased to share that we believe that the company is financially stable and resilient and has enough funding, expertise and support from strategic partners to proceed with the execution of its upcoming projects in the Port of Los Angeles, in Portugal and in other places. I believe in EcoWave Power's team, in EcoWave Power Technology and in the global ambition to fight climate change.

Speaker 1

As a result, we are looking forward to receiving the Financial Supervisory Authority of Sweden approval to purchase back up to 10% of the company's stock on NASDAQ, which is the highest percentage permitted by law to reinstate our belief in our company and our technology. Thank you.

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Key Takeaways

  • Strong financial resilience: Revenues rose 1,076% in 2023 (excluding grants), net loss fell 36%, and the company closed the year with $8.4 million in cash and a lower burn rate.
  • Historic Israeli grid connection: Eco Wave Power sent the first megawatt-hours of clean wave energy to Israel’s national electrical grid, marking the country’s inaugural grid-connected wave energy project.
  • Shell co-funded U.S. pilot: An investment agreement with Shell Marine Renewable Energy will see Shell cover 50% of development, installation, and maintenance costs for a Port of Los Angeles wave energy pilot scheduled to operate in 2024.
  • Portuguese commercial project licensed: The company secured the final license for its first commercial-scale wave energy station in Porto, Portugal, expected online by March 2026 and set to create local jobs and repurpose marine infrastructure.
  • Share buyback plan: Despite the stock trading below its cash value, the CEO announced intent to seek approval to repurchase up to 10% of shares, underscoring strong founder confidence in the company’s future.
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Earnings Conference Call
Eco Wave Power Global AB (publ) Q4 2023
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