Interim report for the period January 1 – June 30, 2020

During the quarter, Climeon made further progress within geothermal, despite the on-going pandemic. Two new power plants have been commissioned in Japan and the first geothermal order was received in Taiwan. Order intake increased by 67 percent and amounted to SEK 40.9 million. Despite the challenging market situation, Climeon had a positive cash flow from operating activities during the quarter. Total cash and cash equivalents and short-term investments increased by 5 percent and amounted to SEK 100.6 million at the end of the period.

April – june

  • Order intake amounted to SEK 40.9 million (24.5)
  • Net sales amounted to SEK 15.6 million (23.9)
  • Operating profit/loss amounted to SEK -36.4 million (-33.7)
  • Cash flow from operating activities after change of working capital amounted to SEK 15.0 million (-80.5), the positive change in the period is mainly due to customer advances
  • Climeon has been granted SEK 12 million in support from the Swedish Energy Agency for a project to make more efficient use of waste heat in the steel industry
  • In April, Climeon commissioned its first geothermal installation in Japan
  • In May, Climeon received a first order within geothermal in Taiwan worth SEK 40.9 million. In addition to Climeon's Heat Power system, the order also includes design and consulting services for the surrounding power plant
  • In June, Climeon commissioned the second geothermal installation in Japan, which is the first in connection with a traditional Japanese spa, Onsen
  • Christina Kassberg has been appointed Chief Financial Officer of Climeon

January – june

  • Order intake amounted to SEK 56.3 million (24.5)
  • Net sales amounted to SEK 29.7 million (46.4)
  • Order backlog totaled SEK 768.9 million (800.8)
  • Operating profit/loss amounted to SEK -68.6 million (-50.4)
  • Cash flow from operating activities amounted to SEK -18.0 million (-101.1)
  • Total cash and cash equivalents and short-term investments amounted to SEK 100.6 million (142.9)


  • Climeon has begun registration and establishment of a subsidiary in Taiwan
  • Climeon has signed a Letter of Intent with the national power company of Iceland, Landsvirkjun, initiating a cooperation. The purpose is to evaluate the possibility of combining mineral extraction with Climeon’s technology

Comments from the CEO

During the quarter, Climeon continued to expand geographically through a first order within geothermal heat power in Taiwan. Suitable geothermal conditions combined with favorable financial incentives from the state in the form of high feed-in tariffs to stimulate green electricity production make Taiwan an interesting market. With this first large order worth SEK 40,9 million we have laid the foundation for an establishment in Taiwan. As much as 40 percent of the order value relates to surrounding services and products, which means that we are offering the customer a more comprehensive solution than before. Selling more complete solutions is an important part of Climeon’s strategy.

In Japan, during the quarter, we commissioned not only the first, but also the second geothermal power plant. I am very proud that we have succeeded in completing these two installations despite the current global situation with severe travel restrictions and delayed transports. Power plant number two has a great symbolic significance as it is next to a traditional Japanese spa, Onsen. Now we can show land owners and spa owners that they can continue their traditional onsens, while gaining access to a new source of income and switching to green energy.

In Iceland, travel restrictions and delayed transports have affected our installation work during the quarter, which is why the two power plants that were planned for commissioning this summer have been delayed. In the Fludir power plant, we have installed a larger pump to increase the water flow and thus the electricity generation from the installed modules. Currently, tests are on-going to evaluate if there is enough hot water to add even more Heat Power modules.

Covid-19 has also had major effects on the maritime industry and many cruise ships remain in port. In June, however, operations in the maritime industry began to cautiously start up again. Our installation team has now been able to board Virgin Voyages’ ship in Italy to continue their work. Installation work on Maersk's vessel, on the other hand, is still delayed due to no one being allowed onboard. We therefore see a risk that commissioning will be postponed over the turn of the year.

Deployment in new markets with a completely new type of technology and solution always faces a long list of challenges where shifted time plans are part of reality. In addition, the global situation with Covid-19 has emerged as a factor. In all our focus areas, we see that ordered power plants take longer to deliver and install right now, which can delay both revenues and repeat orders from existing customers in the short term.

With the intention of getting closer to our customers, we have relocated staff to Taiwan during the quarter and strengthened the local service organization in Japan. To finance this, we have also chosen to re-organize at the headquarters in Kista. This is shown in the quarter through an extra restructuring cost of SEK 3.6 million. We thus continue the work to optimize the organization and review our costs. Overall, we show a positive cash flow and a strengthened position on cash and short-term investments in the quarter, largely thanks to our model with advances in customer orders. We continuously monitor and analyze the global course of events with regard to both operational and financial impact with the intention of ensuring the company's continued development.

Our assessment is that a continued pandemic during the fall will affect our roll-out rate during the year. At the same time, however, demand within geothermal is still very high and largely unaffected by the pandemic. We are dedicated to realizing our potential through hard work and patience for a long time to come. Establishing a new technology takes time, but for every power plant we install, we take one step towards a greener world.

Thomas Öström, CEO Climeon

For full report, please see attached file below.

For more information, please contact:
Thomas Öström, CEO, +46 708 94 96 05,
Charlotte Becker, Investor Relations, +46 730 37 07 07,
Christina Kassberg, CFO, +46 701 84 84 43,

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 August 18th, 2020 at 08:00 CET through the agency of the contact persons set out above.