STOCKHOLM, Nov. 24, 2020 /PRNewswire/ --
OXE Marine AB (publ) (NASDAQ STO: OXE, OTCQX:
CMMCF)
INTERIM REPORT
Third quarter
2020
- Net turnover of SEK 3.4m
(SEK 23.3m)
- Gross Profit of SEK 0.8m
(SEK 2.8m) or gross margin of 24%
(12%)
- Operating Loss/EBIT of SEK -25.1m
(SEK -18.7m)
- Net loss for the period of SEK
-27.3m (SEK -20.8m)
- Order book grew by 77% to EUR
9.6m or SEK 101m (EUR 5.4m or SEK 57m
as at end of Q2 2020)
January - September
2020
- Year to date net turnover of SEK
35.4m (SEK 50.9m)
- Gross Profit of SEK 4.9m
(SEK -7.6m) or gross margin of 14%
(-15%)
- Operating Loss/EBIT of SEK -54.9m
(SEK -65.3m)
- Net Loss for the period of SEK
-61.2m (SEK -76.4m)
- YTD the order book has grown 137% to EUR
9.6m or
- SEK 101m at the end of Q3 2020
(EUR 4.1m or SEK 43m as at end of Q4 2019)
Significant events during the Third quarter
OXE Marine AB ("The Company") announced the following
significant events during the
quarter:
- Following the successful collaboration with the BMW Group of
marinizing their 3 litre, 6 cylinder bi-turbo engine for use in the
OXE300s, OXE Marine AB and BMW agreed to co-brand the
OXE300.
- The Company entered into a Preliminary Development Agreement
(PDA) with the BMW Group to carry out a preliminary study of its
2.0 litre, 4 cylinder turbo diesel engine for marine application -
to power the Company's next generation of OXE200
series.
- The Company received its first commercial order from the US
Coast Guard following testing and
validation.
- The Company agreed on EUR 2,8 m
order for 2021 and resolved not to pursue 50 percent revenue growth
target for
2020.
- The Company entered into a cooperation agreement with Evoy AS,
an electric marine propulsion company based in Norway, to assess the technical and market
viability of a high powered electric
outboard.
- The Company announced that the European Patent Office intends
to grant OXE Marine AB (publ) a European patent for an electric
duoprop outboard.
Significant events after the reporting
period
- 2 October: The Company carried out a directed share issue of
SEK 65.9m to strategic and qualified
investors to finance an accelerated growth strategy.
COMMENTS BY THE CEO
As explained in my previous interim report, we expected subdued
sales for this quarter due to lack of completed units available
from inventory following our strategic decision to stop production
at UFAB for the OXE200 series and move the facility to the US,
where production will commence in January
2021. Sales amounted to SEK
3.4m (SEK 23.3m) for Q3 whilst
gross profit amounted to SEK 0.8m
(SEK 2.8m) with a gross margin of 24%
(12%). In the meantime, the company increased its order book by 77%
to SEK 101m at the end of Q3- see bar
chart below in respect to order book development during the last
twelve months.
The Company has monitored performances of its distributors and
have identified poor performers or territories that have suffered
from the COVID19 lockdown and have taken appropriate actions to
mitigate losses by transferring units held in stock by those
distributors/dealers to distributors/end customers in other
territories that require our product. This does not equate to new
sales but will help with our recoverable in accounts receivables.
Nevertheless, we have prudently made provisions for bad debts due
of around SEK 2.7m. We are continuing
such actions in Q4 and therefore should expect similar or lower
revenues for Q4.
Our strategic decision of moving the OXE200 production away from
UFAB is well underway and it was announced recently that the chosen
facility is based in Albany,
Georgia in the south east of the US with Outboard Network
Manufacturing (ONM) as our assembly partner. Our parts have now
been shipped from Sweden and we
expect to start production in January
2021.
Our preparation for series production of the OXE300 with our
assembly partner, PanLink, with its operations in Poland, is going according to plan. We have
built a number of pre-series in Ängelholm and continued with
extensive durability testing. We have made further improvements to
the product and have updated our supply chain with these
improvements. We are now aligning delivery of parts to Poland and expect to start series production
in Q1 2021. The Company successfully concluded the certification
run for EPA and IMO emission test and recently received the
certificates for these.
We continued with our collaboration with BMW through a
co-branding initiative for the OXE300, which is powered by BMW's 6
cylinder bi-turbo 3 litre engine. Additionally, the Company entered
into a preliminary development agreement to assess BMW's 4-cylinder
two litre turbo diesel engine for marine application - to power its
next generation OXE200 series. The Company also entered into a
cooperation agreement with Evoy A/S to assess the viability and
marketability of a high-powered electric outboard.
The Company awarded Parsun, the largest Chinese engine outboard
manufacturer, the mainland China
distribution rights for our products. The initial batch of OXE200
engines was sold during the quarter. The company also achieved its
first commercial order from the US Coast Guard ("USCG") for the
OXE200s, after three years of validation and testing. The USCG has
a significant fleet, running in the hundreds that will require
repowering. We also sold units to the Russian Rescue Service and
expect more orders in due course.
Finally, at the end of the quarter, we awarded the Distribution
rights of our products for Florida
and US Gulf Coast territory to ODN, which was secured through an
initial order worth EUR 2.8 million.
The territory represents the largest outboard market in the world -
approximately 25% of global high- powered outboard sales are
generated from this region.
During the quarter, the Company began trading its shares on the
OTC platform (OTCQX: CMMCF), which would allow US investors to
trade in our shares, given that over half of the Company's Revenues
will be generated in the US - this platform should also improve
liquidity of share trading as well as diversify our shareholder
base. In September, the Company was promoted to the OTCQX, OTC's
market's top tier platform - this should encourage further
liquidity and visibility to US retail investors.
Following the end of the quarter, the Company raised
SEK 65.9m from a directed share
issuance to strategic and qualified investors to finance our
accelerated growth strategy. I am grateful for the continued
support by our shareholders and various stakeholders.
The Board and Management remain confident of the future and look
forward to growing the business in a sustainable and profitable
manner.
Myron Mahendra
Chief Executive Officer
This disclosure contains information that OXE Marine AB is
obliged to make public pursuant to the EU Market Abuse Regulation
(EU nr 596/2014). The information was submitted for publication,
through the agency of the contact person, on 24-11-2020 07:30
CET.
CONTACT:
Certified Adviser
FNCA Sweden AB is Certified Adviser for OXE Marine AB (publ).
Contact details to FNCA Sweden AB: tel. +46 8 528 00 399,
e-mail info@fnca.se
For further information, please contact:
Myron Mahendra, CEO,
myron.mahendra@oxemarine.com , +46 76 347 59 82
Anders Berg, Chairman,
anders.berg@oxemarine.com , +46 70 358 91 55
OXE Marine AB (publ) is obligated to make this information
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication, through the agency of the contact
persons set out above, on 24 November 2020 at 07.30 CET.
OXE Marine AB (publ) (NASDAQ STO: OXE, OTCQX: CMMCF) has,
after several years of development, constructed the OXE Diesel, the
world's first diesel outboard engine in the high-power segment. The
Company's unique patented engine-to-propulsion power transmission
solutions have led to high demand for the Company's engines
worldwide.
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/oxe-marine-ab/r/oxe-marine-ab--publ--interim-report-1-july-to-30-september-2020,c3239408
The following files are available for download:
https://mb.cision.com/Main/16067/3239408/1338918.pdf
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Q3 2020 INTERIM
REPORT
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https://news.cision.com/oxe-marine-ab/i/q3-2020-interim-report,c2852452
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Q3 2020 INTERIM
REPORT
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SOURCE OXE Marine AB