Hørsholm, Denmark, February 26, 2024 - Bawat Water Technologies AB (BAWAT) today announces its Q4 Report for 2024. The report is available on Bawat's website (investor.bawat.com)
BAWAT is a leading supplier of sustainable ballast water treatment technology and services. BAWAT was listed on Nasdaq First North Premier Growth Market in Stockholm in March 2022.
Continued efforts to introduce BaaS (Ballast-as-a-Service) in larger scale to the market. Guiding for a positive EBITDA in 2025.
H2 2024
- Sales in H2 was SEK 6.3m and FY sales is SEK 15.1m.
- Clients postponed contracted BaaS jobs to Q1 2025, and a delay in initiating investment in two new mobile units for BaaS jobs, delayed sales of approximately 16 mill SEK (EBITDA, SEK 5 mill) from H2 2024 to H1 2025. This is full in line with guidance published 7. Jan 2025.
- Ballast as a Service, BaaS, now also a registered Trademark, has with success been introduced not only in Hamburg where first jobs have been delivered, but also in other German ports. This demonstrates German Port State Authorities willingness and ability to follow-up and enforce the ballast water convention that went into full force in September 2024.
- BaaS was also delivered to first yard clients in the half year and thus confirms that BaaS concept is eligible not only as contingency for vessel owners in port but for a much broader spectrum of ballast water deficiencies.
- Bawat is extraordinarily proud of being able to deliver the BaaS product to the market and being instrumental in closing the gap between the intentions in the ballast water convention and the reality in ports and yards.
- Bawat has in the half year placed an order for more BaaS capacity from its joint venture partner Damen Green Solution, thus being able to service more vessel owners during H1 2025.
- Bawat has for some time promoted its technology as a bio-filter for water applications, and during the half year, constructive dialogues are ongoing with industrial clients and partners.
In January 2025, post H2 closure, a directed share issue of approximately SEK 16m was successfully carried through, and the proceeds will primarily be used to increase BaaS capacity.
Bawat is investing significantly into the business opportunity that Ballast-as-a-Service provides. With the ballast water convention coming to its final implementation in September 2024, whereafter the national authorities can inspect and test the system functionality as well as the discharged ballast water. With the introduction of Ballast-as-a-Service concept, Bawat can help non-compliant vessel owners when it comes to ballast water. The market for BaaS is coming both from non-compliant vessels arriving in port, non-compliant discharges from docks and yards, but Bawat is also experiencing interest in BaaS as prioritized availability for customers, ensuring fleet compliance relative to ballast water. With its unique one-pass technology, Bawat BaaS is positioned well as first mover in the BaaS market.
FINANCIAL KEY FIGURES Q4 2024
| SEK '1.000 | H2 2024 | H2 2023 | 12M 2024 | 12M 2023 |
| Sales | 6.393 | 10.846 | 15.179 | 22.675 |
| Gross Profit | 1.764 | 8.358 | 2.919 | 10.702 |
| Gross Profit % | 27,6% | 77,1% | 19,2% | 47,2% |
| EBITDA* | -10.461 | -2.101 | -22.842 | -14.702 |
| Result for the period | -18.279 | -11.895 | -39.841 | -33.605 |
| Earnings per share | -0,27 | -0,23 | -0,65 | -0,71 |
| Cash flow from operations** | -10.693 | -18.560 | -22.162 | -27.827 |
| Net working capital | -3.350 | -732 | -3.350 | -732 |
| Equity ratio % | -37,1% | -17,5% | -37,1% | -17,5% |
*In addition to this, Capital raise and other related non-recurrent items in 2023 (SEK 2.4 in H2 '23 & 3.4 in FY2023)
**In addition to this, Capital raise and other related non-recurrent items SEK 2.7m in H2 '24 & 3.1 in FY 2024 (SEK 2.4m in H2 '23 & 6.4 in FY 2023)
Marcus P. Hummer, CEO. "Ballast-as-a-Service jobs are now regularly occurring and have been executed in Northern Europe with mobile systems based out of Hamburg and Denmark.
We are pleased to see that many different customers have engaged with us and used BaaS service for various different defeciencies in their ballast water management set-up. In port we service vessels with contingency need to discharge ballast water, but we have also supplied the BaaS service to our first yard customer and are pleased to see that market segment also opening up. There is gradually a growth in the market accepting that ballast water cannot alone be handled with vessel installed systems in order to be compliant".
"We still do not see the level of Port State control from Authorities that we had expected and hoped for after the full implementation of the ballast water convention in September 2024, but we do however see clear movement in the right direction. With the full implementation of the ballast water convention on 8th September 2024, we must expect a significant change in Port State Authorities regulatory regime in order to reduce non-compliant ballast water discharges".
Guidance 2025
The Company has gradually changed its emphasis to more focus on sales of its mobile solutions and in particular BaaS solutions, while still offering our unique pasteurization solutions to vessels. So in essence Bawat has three legs to stand on based on same unique and patented technology, pasteurization.
Following the final adoption of the ballast water convention on 8th September 2024 Bawat has seen a gradual ramp-up in activities. This also means the existing guiding principles being sales forecast are no longer ideal to measure performance as the new activities contribute with a far higher margin than pure sale of systems.
On this basis we have changed our guiding principles from sales to EBITDA which the board find being a far more relevant guiding principle at this point.
| EBITDA is expected to be positive for H1 2025 as well as for the full year 2025. With the H1 announcement we will guide on the EBITDA range for the full year. |
At the time of our listing in March 2022 our prospectus guided our investors towards EBITDA-breakeven Q4 2024. Hence our guidance is almost in line with our prospectus from 2022 although our contribution margin is significantly higher.
Find the full Q4 2024 report here: https://investor.bawat.com/company-reports/
FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements. Words such as 'believe', 'expect', 'may', 'will', 'plan', 'strategy', 'prospect', 'foresee', 'estimate', 'project', 'anticipate', 'can', 'intend', 'outlook', 'guidance', 'target' and other words and terms of similar meaning in connection with any discussion of future operating or financial performance identify forward-looking statements. Statements regarding the future are subject to risks and uncertainties that may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events which may prove incorrect.
FOR MORE INFORMATION, PLEASE CONTACT:
Investors & Media:
Marcus P. Hummer, CEO, E-mail: mph@BAWAT.com
John B. Henriksen, CFO, E-mail jbh@BAWAT.com
Certified Adviser
Svensk Kapitalmarknadsgranskning AB
ca@skmg.se
This press release constitutes inside information that Bawat Water Technologies AB is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out above, at the time stated by the Company's news distributor, Cision, at the publication of this press release on August 31st, 2024.
For further information about Bawat Water Technologies AB, please contact above.
About Bawat
The development of an entirely new approach to ballast water treatment utilizing onboard waste heat to treat ballast water led to the founding of Bawat in 2011. A ballast water treatment system avoids disposal of untreated water in seas and harbors.
Bawat's BWMS is a system that is simple, cost-effective, and sustainable, build on a zero environmental impact, using standard marine components. No filters, no chemicals no UV. Bawat is the first to market a USCG/IMO Type Approval BWMS that uses pasteurization to treat ballast water in a one-pass process.
Bawat has built upon its innovative breakthrough and offers ballast water solutions to the maritime industry in three categories:
- Ship BWMS for Retrofit and New Builds
- Mobile containerized solution for multiple vessel usage in a port, on a ship or offshore units
- Bawat BaaS - Ballast as a Service for contingency or planned ballast treatment in ports
Bawat is an engineer-driven company that is rooted in the tradition of Danish maritime innovation and with a deep maritime insight: www.bawat.com.
