Eco Wave Power Global AB (publ) Q2 2024 Earnings Call Transcript

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September 3, 2024

There are 3 speakers on the call.

Operator

Greetings. Welcome to the Ecowave Power Second Quarter 2024 Earnings Call. At this time, all participants are in a listen only mode. I will now turn the conference over to your host, Aaron Yauta, Chief Financial Officer. You may begin.

Speaker 1

Thank you. Thank you all for taking the time and joining us for our quarterly webcast. In the first half of twenty twenty four, EcoAir Power continued with its cost reduction strategy, while achieving progress in all key projects, which Ina will discuss following my presentation of the financial results. As a result, in the first half of twenty twenty four, we have recorded an operating cost reduction of 1.6%. The main reason for the reduction was the reduction in sales and marketing costs by 29%.

Speaker 1

As to other costs, R and D costs remained stable at $320,000 and G and A costs increased by 5%. Other income of $32,000 was generated mainly from grants and from management fees in a joint venture. As a result, our operating loss reduced by 1.6%. Please note that as mentioned in Q1, we have now prepared the company for the execution of the 1st turnkey project, meaning the sale of equipment to a 3rd party, which upon execution is expected to enhance the company's income and strengthen its financial position. The company ended the period with $7,480,000 in cash and cash equivalents and in short term bank deposits.

Speaker 1

I will now turn the conference over to Ina Braderman, Chief Executive Officer of Equifax Power. Ina, you may begin.

Speaker 2

Thank you for the presentation, Alan. So as Alan mentioned, in the first half of twenty twenty four, we were able to keep the low level of expenses and continue to demonstrate our resilience by decreasing our operating expenses by 1.6% compared to the first half of twenty twenty three, ending the year with US7.48 million dollars in cash and in short term bank deposits. There was also progress across all key projects, including significant improvements in the operational results of the EWP EDF-one project at the Port of Jaffa in Israel, which reached 0% downtime for the very first time and got closer by 17% to its energy generation targets. The company and the project also received the prestigious EDF Pulse Award by Electricitade de France, EDF, which is a multinational electric utility company and the largest renewable energy producer in Europe. They are also our partner in the EDF project in Israel.

Speaker 2

We believe that the winning of this award and this recognition will lead to an extended collaboration with the EDF Group. In our Port of Los Angeles project, we have submitted the final licensing documents for the installation of the project at the Port of LA, which were approved by the Port of LA and we are currently pending final approval by the U. S. Army Corps of Engineers. In parallel, representatives Nanette Baragon and Suzanne Bonamici introduced a very promising legislation, the Marine Energy Technologies Acceleration Act, which is proposed which is a proposed legislation that would appropriate $1,000,000,000 to advance marine energy towards full scale commercialization in the United States.

Speaker 2

Representative Barragan has already visited Ecowave Power's installation site in the Port of LA and was impressed by the abundant possibilities for wave energy implementation in California and in the United States. The Marine Energy Technologies Acceleration Act would provide unprecedented levels of funding to the Department of Energy Water Power Technologies Office for demonstration projects, research and development, detailed resource potential mapping, workforce development and more efficient permitting processes. We are grateful that representatives Berrigan and Bonamici recognize the vast potential of Wave Energy in meeting the United States renewable energy targets and promoting economic growth through the blue economy. The U. S.

Speaker 2

Is becoming a global leader on climate initiative and this new federal legislation further demonstrates the U. S. Leadership across the world. We believe that Wave Energy has massive potential and we will soon be demonstrating our pioneering technology at the Port of Los Angeles and showcasing that Wave Energy can be a significant force in combating climate change and powering our communities with clean, reliable energy sourced from the endless power of the ocean. And finally, in July last month, we held an official kickoff meeting for our 1st megawatt scale project in Portugal, which included a site visit by our engineering team and meeting with relevant subcontractors to advance with the project.

Speaker 2

We believe that this will be the 1st wave energy project in the world to show significant energy production from the power of the waves. I truly believe that this revolutionary project will position Ecowave Power as a leading wave energy developer and serve as a significant milestone towards the commercialization of our wave energy technology globally. We would like to thank the municipality of Porto and APDL for being true wave energy pioneers by enabling and supporting the development of an innovative environmentally friendly energy generation technology, which will serve to lower the port's carbon footprint, while creating new workplaces and an innovative industry in Portugal. At the same time, we have reinforced our engineering team by adding 2 members and are in the process of establishing a U. S.

Speaker 2

Based sales and business development team to enable the company to enter into deals for turnkey wave energy projects, which we believe will in turn significantly boost the company's revenues in addition to the revenues that the company has been generating from feasibility studies and other related engineering services. The expansion of our engineering team in Israel and the new business development and sales team in the U. S. Are well underway and we believe that such enhanced company structure will lead to positive financial results and accelerated project delivery. Lastly, we are excited to update that we have recently received a green light to commence our American depository shares repurchase plan and we are working on setting the appropriate arrangement with the bank to pursue such opportunity.

Speaker 2

We believe that our ADS repurchase plan will allow our leadership to have a greater scope to us and have the opportunity to improve the company's capital structure, driving greater shareholder value and improving the investment value of our company. Ecowave Power is entering a very exciting period, which will involve an expansion of our team, expansion of the company's operational projects, expansion of our revenue streams and strategic partnerships. I would like to reiterate our gratitude to our shareholders for joining us on this exciting journey. We look forward to sharing more exciting progress. Thank you very much.

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Key Takeaways

  • Operating costs were reduced by 1.6% in H1 2024—driven by a 29% cut in sales and marketing—leading to a corresponding reduction in operating loss.
  • The EWP EDF-one project at the Port of Jaffa achieved 0% downtime, moved 17% closer to energy generation targets, and won the EDF Pulse Award, positioning Ecowave for deeper collaboration with EDF.
  • Final licensing for the Port of Los Angeles wave-energy installation has been approved by the port and is now pending U.S. Army Corps of Engineers sign-off, advancing the project toward construction.
  • An official kickoff for the first megawatt-scale wave project in Portugal was held in July, marking what is expected to be the world’s first significant energy production demonstration from ocean waves.
  • Ecowave received approval to launch an American Depositary Shares repurchase plan, which management expects to enhance capital structure and drive greater shareholder value.
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Earnings Conference Call
Eco Wave Power Global AB (publ) Q2 2024
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