TECO 2030 (TECO) H2 2023 earnings summary

Executive summary

• TECO 2030 is focused on developing hydrogen fuel cells for marine and heavy-duty applications, aiming to drive the green transition in shipping and heavy industry.

• 2023 saw significant progress in fuel cell module development, the opening of the Narvik Innovation Center, and the assembly and testing of the first FCM400 system.

• The company secured major grants, strategic partnerships, and a robust sales pipeline, with active quotes exceeding EUR 1.3 billion.

• Financial challenges persisted due to limited revenue and a difficult capital market, but new funding and bond conversions in 2024 have strengthened the balance sheet.

Financial highlights

• Group revenue was NOK 9.3 million in 2023, down from NOK 12.6 million in 2022, mainly from a Future Funnel sale and subleases.

• Operating loss increased to NOK 101.1 million (2022: NOK 81.9 million); net loss after tax was NOK 117.7 million (2022: NOK 93.4 million).

• Total assets rose to NOK 507 million (2022: NOK 356.4 million), driven by capitalized development costs and inventory build-up.

• Equity fell sharply to NOK 5.7 million (2022: NOK 102.1 million); equity/total assets ratio dropped to 1.1% from 28.6%.

• Cash at year-end was NOK 0.4 million, down from NOK 47.2 million; cash flow from operations was NOK -60.4 million.

Outlook and guidance

• Regulatory support for hydrogen and emission-reducing tech remains strong, but market adoption is slower than expected, causing delays.

• If funding initiatives succeed in Q3/Q4 2024, production and first sales of fuel cell systems are expected to commence.

• The board is optimistic about securing further funding and expects to close private placements in 2024.