New global regulations accelerating the maritime industry’s climate transition have been accepted. Climeon has achieved successful HeatPower installations. The first retrofit installation of the HeatPower 300 was completed on a container vessel. At the same time, commissioning began for the six units previously ordered by the Korean shipyard HD-HHI for A. P. Møller-Maersk. These units will be commissioned during the summer and autumn. Additionally, four HeatPower 150 units were commissioned at Landmark Power Holdings’ power plant in Rhodesia, UK.

In addition to the cost-saving program initiated in 2024, which has now begun to show effect, Climeon has implemented additional savings measures, such as relocating its offices, which will have full effect during 2025–2026. All decisions made at the Extraordinary General Meeting in December 2024 have now been executed.

IMPORTANT EVENTS DURING THE PERIOD

• During the quarter, the number of inquiries to Climeon continued to increase. Discussions with shipyards and shipowners are becoming increasingly concrete regarding specifications and integration on board, and several projects progressed to the next phase during the quarter.
• Climeon successfully completed the first of two planned retrofit installations of the HeatPower 300 on an existing container vessel. Installations on vessels already in service open up a new market with significant global sales potential.
• Installation of the six HeatPower 300 units ordered by the Korean shipyard HD-HHI for A.P. Møller-Maersk is ongoing. Preparations for commissioning of the first units have been made.
• Climeon completed commissioning of four HeatPower 150 units at Landmark Power Holdings’ power plant in Rhodesia, UK.
• During 2024 and the first quarter of 2025, the company implemented extensive cost-saving measures across operations and to streamline the production and supply chain for HeatPower 300. The savings are expected to take full effect from 2025 onwards.
• All resolutions passed at the Extraordinary General Meeting on December 9, 2024, including the appointment of Sebastian Ehrnrooth as Chairman of the Board, a reverse stock split (10:1), and an employee and board-wide options program, have now been implemented.

JANUARY - MARCH

• Order intake amounted to SEK 0.0 million (0.4)
• Net sales amounted to SEK 5.2 million (13.3)
• Order backlog amounted to SEK 13.4 million (18.5)
• Operating profit amounted to SEK -40.0 million (-23.7), including a one-off inventory write-down of SEK -14.0 million (0.0) related to HeatPower 150 components
• Profit/loss after financial items amounted to SEK -43.3 million (-21.6), also including the SEK -14.0 million inventory write-down
• Earnings per share, before and after dilution, amounted to SEK -1.22 (-1.00)
• Cash flow from operating activities after changes in working capital amounted to SEK -9.4 million (-28.4)
• Total cash and cash equivalents amounted to SEK 12.2 million (26.3).
• Additionally, restricted cash amounted to SEK 2.7 million related to guarantees for upcoming customer deliveries, which will begin to be released in Q3 2025. Total liquidity including restricted funds was SEK 14.9 million.

POST CLOSING EVENTS
The IMO has accepted a proposal for new global regulations to reduce greenhouse gas emissions from international shipping. A global CO₂ tax is planned for implementation in 2027.

A WORD FROM OUR CEO:

New Global Regulations Driving the Maritime Industry's Climate Transition Have Been Accepted, and the Number of New Ships Including ORC in Their Specifications Has Reached a New Level

In the first quarter of 2025, global turbulence increased even further. Geopolitical tensions continued to escalate, and the United States announced sweeping tariff hikes targeting much of the world. Climeon is not directly exposed to the U. S. market or the new tariffs. At this time, we also do not foresee any indirect effects that would impact Climeon. Like many others, we are closely monitoring global developments and will adapt our operations if needed. In the markets we focus on—maritime, industrial, and energy—we see improving conditions for Climeon.

In April, a majority of member countries of the IMO (International Maritime Organization) approved a new regulatory framework and financial incentive scheme to reduce greenhouse gas emissions from international shipping. The regulation is expected to formally take effect in 2027, with the financial measures scheduled to begin on January 1, 2028. The system is similar to a global CO₂ tax and resembles the EU’s FuelEU concept. It is intended to both accelerate the technical transition and create an economic fund to be reinvested in the maritime sector’s climate transition. Meanwhile, the EU Emissions Trading System (EU ETS) remains in force, meaning that shipowners must now pay for CO₂ emissions when calling at European ports. Together, these new rules and incentives further strengthen the business case for the maritime industry to invest in technology that reduces fuel consumption and CO₂ emissions.

Shipping companies are increasingly working to improve the energy efficiency of their fleets to meet stricter environmental regulations. Climeon continues to receive more inquiries from shipyards and shipowners looking to integrate ORC technology for waste heat recovery. These discussions are becoming more detailed, and several projects moved forward to the next phase during the quarter.
In Q2 this year, the first HeatPower 300 units in commercial operation will begin producing electricity at sea. First up is the retrofit installation on an existing container ship completed in Q1. In May, when the ship returns to Europe from its voyage to China, our team will board to commission the system and hand it over to the crew. Just weeks later, we’ll begin commissioning the first of six HeatPower 300 units installed on A. P. Møller-Maersk’s new series of vessels currently being built by HD Hyundai in South Korea. These are important milestones—not just for Climeon, but for the maritime industry, which will be able to demonstrate real reductions in fuel use and CO₂ emissions through low-temperature heat recovery on both newbuilds and existing ships.

In the energy and industrial markets, we’re also involved in several projects using our technology— including significant interest from engine-based power plants where customers aim to improve fuel efficiency and reduce emissions. During the quarter, we commissioned four HeatPower 150 units at Landmark Power Holdings’ power plant in Rhodesia, UK. Several similar plants are in the planning stage with Climeon’s technology already specified. The two HeatPower 300 units installed at the NEO Group’s PET resin plant in Lithuania continuously deliver sustainable electricity, and we’ve now begun providing service there. We are working on several new and exciting projects in the energy and industrial space that we look forward to sharing more about over the year.

In addition to the cost-saving program launched in 2024, which has now started to show results, we’ve implemented further measures—such as relocating offices—that will have full effect during 2025–2026. Our former subsidiary in Japan and our branch office in Iceland have now been closed. All actions decided at the Extraordinary General Meeting last December have now been executed. These efforts have brought Climeon to a new cost level—better aligned with the sales and delivery phase we are currently in and moving toward.

2025 is shaping up to be an exciting year. We welcome you to follow us on our journey!

Lena Sundquist, CEO, Climeon

For full report, please see attached file below.