Bergen Carbon Solutions (BCS) Q2 2024 earnings summary

Executive summary

• Focused on carbon capture and utilization (CCU) and process optimization for sustainable carbon products, targeting battery industry needs for electrification and decarbonization.

• Technology enables local production of carbon nanotubes (CNT), synthetic graphite, and carbon black from CO2, reducing environmental impact compared to fossil-based production.

• Completed a state-of-the-art Battery Lab at headquarters, enabling in-house coin cell manufacturing, testing, and accelerating product development.

• Strategic partnerships and technology agreements, including a recent LOI with Morrow Batteries and ongoing cooperation with Huchems, are central to business development.

• Organization reshaped to align with battery technology strategy, onboarding new competence and recruiting top talent.

Financial highlights

• Q2 2024 net loss of NOK 17.8 million, improved from NOK 18.4 million in Q2 2023; H1 2024 net loss of NOK 37.8 million.

• Adjusted net loss for Q2 2024 was NOK 14.6 million, excluding NOK 3.2 million in one-offs (mainly non-cash costs).

• Cash and cash equivalents at period end were NOK 191.5 million, down from NOK 259.5 million a year earlier.

• Operating expenses for Q2 2024 were NOK 19.9 million; basic and diluted EPS for Q2 2024 were both NOK -0.42.

• Financial income for Q2 2024 included NOK 2.3 million from grants and interest.

Outlook and guidance

• Continued focus on process and technology optimization, iterative testing, and collaboration with industrial partners to meet stringent battery market requirements.

• Development work is more time-consuming and complex than initially anticipated; exploring optimized process routes.

• No expectation of confirmed off-take contracts until further technology development milestones are achieved.

• Ongoing efforts to secure additional technology development agreements and strategic partnerships.

• The company is well-financed to support its current strategy and operations.