Q2 2026 Minesto AB Earnings Call Transcript
Key Points
- Minesto AB (FRA:7MN) reported a 25% improvement in operating loss to SEK15.4 million for H1 2026, driven by a 18% reduction in total operating expenses.
- The upgraded Dragon 4 power plant achieved record-breaking electricity production over the summer, demonstrating consistent output during high-flow periods, a key customer requirement.
- The company's cash flow from operating activities improved significantly, with cash use decreasing from SEK25.1 million to SEK15.2 million year-on-year.
- The PPA with SEV has been renewed, and the company holds an exclusive relationship for the Hestfjord build-out, providing a solid foundation for the first 10-megawatt tidal array.
- The EIB advisory work on the 10-megawatt investment case was completed with high grades, which is expected to bolster future EU funding and commercial dialogues.
- The company is engaged in in-depth dialogues with multiple actors to strengthen its industrial owner base and secure a first significant order, with the new board member from Mitsubishi Heavy Industries and Vestas adding valuable industrial contacts.
- Minesto AB (FRA:7MN) faces infrastructure bottlenecks, including onshore control station capacity and foundation strength, which currently limit further production and require upgrades.
- The company's cash position of SEK38.4 million is sufficient only for planned activities through year-end, and the CEO declined to rule out future rights issues.
- The CEO stated that conventional bankability for the technology is not yet achieved, as no tidal array has been built and run for several years, limiting access to low-risk pension fund capital.
- The company is not planning to offer a financial structure for shareholders to invest directly in project development companies, potentially limiting 'skin in the game' from its investor base.
- The CEO acknowledged that the discrepancy between actual production and potential output is a hurdle to reaching serious commercial breakthroughs, despite internal understanding of the gap.
- The company is facing challenges in Asian markets like the Philippines and Indonesia due to immature industrial infrastructure and a lack of readily available marine operational assets.
Hello, and a warm welcome to today's broadcast with Minesto, who will be presenting the report for the second quarter of 2026. With us, we have CEO, Martin Edlund; and CFO, Alexander Jancke. Welcome. (Operator Instructions)
And with that said, I hand it over to you guys. I'll be back any time for the Q&A. The floor is yours.
Thank you, Elliot. And let's start with our CFO, Alexander Jancke.
Yes, hi, thank you and hello everyone. We will start with the financials for the first half of 2026, where I first will go through some key highlights of the profit and loss and then regarding the cash flow before I hand over to Martin again.
Starting with profit and loss, turning to our financial performance for the first half of 2026, we continue to see a positive effect of the cost optimization measures implemented during the past year.
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