Interim report for the period 1 January – 31 March 2018


Financial development, January – March 

  • Order intake amounted to SEK 51.5 (10.4) million in the first quarter 
  • Order backlog amounted to SEK 404.3 (44.6) million
  • Net sales amounted as scheduled to SEK 0.0 million (0.6) as next deliveries are expected in second quarter 2018 
  • Operating profit/loss amounted to SEK -20.1 million (-10.2) 
  • Earnings per share amounted to SEK -0.46 (-0.29) 
  • Cash amounted to SEK 169.8 million (204.0)
  • Cash flow from operating activities amounted to SEK -16.4 million (-15.1) with a positive contribution from changes in working capital SEK 1.4 million (-5.7) partly explained by advances from customers 

Important events, January – March 

  • In January 2018 Climeon owners Gullspång Invest AB, LMK Forward AB and Blue AB decided to establish the financing company Baseload Capital Sweden AB (Baseload Capital) to accelerate global geothermal heat power projects. Climeon will participate through a minority stake of 19.9 percent 
  • A business agreement worth over EUR 5 million was signed in February 2018 with the German energy provider Geoenergie Kirchweidach, resulting from the Letter of Intent signed in the fourth quarter 2017 
  • A redemption of outstanding warrants, directed to key individuals and advisors in the company, during the quarter resulted in 1,455,800 new B shares 
  • The conditional agreement signed with Varmaorka (subsidiary to CP Energy) in August 2017 was converted into a firm order with delivery starting in the second quarter 2018. Climeon’s previous financing commitments have been taken over by Baseload Capital 

Important post-closing events 

  • During April, a new business agreement was signed with Borealis GeoPower, Canada, worth around EUR 1 million. Climeon has thus won the world’s first order of geothermal power plant in Canada 
  • At the beginning of April Climeon was appointed ‘‘New Energy Pioneer’’ by Bloomberg New Energy Finance. After globally screening companies within the energy-, transport- and tech sectors, Bloomberg selected ten companies with potential of changing the world 
  • Karl Brodin started as Head of Research & Development during April 2018. His most recent employment was with Atlas Copco where he held leading roles within business and product development 
  • On April 19, 2018, Climeon’s Annual General Meeting was conducted. In connection with the meeting, Climeon invited shareholders, analysts, media and others interested in a presentation of the company 
  • A representative office opened in Japan to investigate and evaluate Climeon’s potential in the local market 

CEO's comments


We now have a clear breakthrough in our geothermal energy business after following up our first deal on Iceland in August 2017 with deals in the U.S. Germany and Canada. At the stock market listing in October, we thought progress would be slower, so we have been pleasantly surprised by the speed and width of the deals we have won since then. 

The deal we closed during the first quarter amounted to over EUR 5 million and came from German energy provider Geoenergie Kirchweidach (GEK). The local community now receives electricity for both housing and 20 hectares of greenhouses cultivating for instance tomatoes, which gives both revenue and many jobs. Germany is the European leader in sustainable energy, and having a successful geothermal installation helps us close more deals both in Germany and beyond. We also fulfilled the key conditions in the deal with Icelandic Varmaorka, and will thus during the current quarter begin delivering the initial seven modules of the 100 in total. 

In addition to geothermal heat power, we still see strong potential in waste heat from heavy industries and maritime. During the quarter, payment was received for delivery of the six first modules to Fincantieri/Virgin and we are well positioned within the Maritime segment. Even though the sales cycles in that segment are long, we also see that competitors are struggling to catch up. 

At the end of the quarter, our order backlog had increased to SEK 404 million, of which Geothermal energy represented 88 percent. These order will start to be delivered from the second quarter with production increasing in line with sales. During the first quarter we have prepared the work with serial production, increasing purchasing volumes, tests and quality systems that need to be ready when the scale up really takes off with deliveries to Iceland as the first one out. During the first quarter, we had a positive contribution to our working capital, due in part to prepayments from customers. 

Attractive deals 
We see proof after proof that it is attractive for customers and financial backers to invest in geothermal heat power. The plants produce electricity around the clock, all year long, and electricity producers can sign long-term power-purchase agreements (PPA) with a fixed price (i.e. during 15 years) for the electricity supplied to the grid. A product that makes electricity from hot water thus makes money out of hot water with great predictability for a long time to come. Cash flow and investments can thereby be calculated, which also makes it easier for customers to obtain financing. 

The existence of Baseload Capital is a clear advantage since customers frequently need to finance their investments externally. For understandable reasons, banks lack experience in financing our type of heat power, which means that the processes are slower when using a bank. Baseload Capital focuses entirely on sustainable baseload power, and can offer our customers pre-approved loans with favorable conditions. Baseload Capital provided financing for both Icelandic Varmaorka and U.S. Wendel, thereby freeing Climeon from its previous financing commitments to these customers. 

Production in focus 
Our focus is every bit as centered on production and the entire logistics chain as it is on generating business. In previous years, we have prepared for a future with delivery of much higher volumes and it has paid off. Now this has turned into a tangible plan with a strong organization executing on it together with partners and subcontractors. In addition to our contract manufacturer Mastec increasing its capacity, we are, for example, also expanding the testing capability with an addition site in Kista. Another important aspect involves securing volumes with specific key suppliers. The development unit has a structured approach aimed at enabling more efficient serial production. 

The journey towards becoming the world’s Climate Solver number one, involves many steps and intensive work for a long time. We have come a long way from the start-up we were, now taking several steps towards full serial production. The dream has become a vision, a vision with a clear plan. 

Thomas Öström 

For full report, please see attached file.

FNCA Sweden AB is Certified Advisor for Climeon.

For further information, please contact:
Thomas Öström, CEO, +46 708 94 96 05, 
Christoffer Andersson, COO, +46 762 00 72 99,

This press release contains such information that Climeon AB (publ) is required to publish in accordance with the EU Market Abuse Regulation. The information was published for public disclosure on May 18th 2018 at 08:00 CET through the agency of the contact persons set out above.