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

Eco Wave Power Global AB (publ) (NASDAQ:WAVE) Q4 2023 Earnings Call Transcript April 2, 2024

Eco Wave Power Global AB (publ) isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Greetings. Welcome to the Eco Wave Power Fourth 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. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Inna Braverman. Ma'am, you may begin.

Inna Braverman: Thank you. And thank you, everybody for joining today. The economic landscape in 2023 was marked by unpredictability and numerous challenges. As this year's start, both consumers and economies pray for possible recession. When faced with such challenges, we at Eco Wave Power understood that we must adapt and learn how to navigate through the turbulence and have learned over the past year 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 1,076%, not including funds received from grants and other sources, and decreased our net loss by 36%, ending the year with $8.4 million in cash and deposits.

An aerial view of a power plant, symbolizing the company's investments in energy infrastructure sector.

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 first megawatt hours of clean electricity from the waves to the Israeli National Electrical Grid, marking the first time in the 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 first U.S. project at the Port of Los Angeles, according to which Shell will participate and co-fund the development of Eco Wave Power's first project in the United States. The agreement was entered by Shell Technology Marine Renewable Program, which is an R&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 costs of the Wave Energy pilot station with scheduled payments in line with key project milestones. The project is expected to be up and running during 2024, this year. This is the second collaboration between Eco Wave 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 US coastline and worldwide. The three month in-depth feasibility study, which now has been completed, has shown favorable conditions for clean energy production in multiple locations in the US 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. We are thrilled 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 first commercial scale project in Portugal that is expected to be finalized by March 2026, in two 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.

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