The shipping company NovaAlgoma Cement Carriers has placed an order for a HeatPower 300 system intended for a new vessel to be built in China, which will be the world's largest bulk carrier for transporting dry cement. Deliveries to the six container ships that South Korean HD-HHI is building for A. P. Møller-Maersk have been successfully completed. Through a directed share issue, existing and new owners contributed SEK 50 million before transaction costs. At an extraordinary general meeting in December, Sebastian Ehrnrooth was appointed as the new Chairman of the Board.

OCTOBER - DECEMBER

• Order intake amounted to SEK 5.4 million (10.5).
• Net sales amounted to SEK 9.7 million (1.2) and were primarily attributable to delivery of HeatPower systems.
• Operating profit/loss amounted to SEK -27.8 million (-25.1).
• Profit/loss after financial items amounted to SEK -26.7 million (-36.0)
• Earnings per share, before and after dilution, amounted to SEK -0.08 (-0.10)
• Cash flow from operating activities after changes in working capital amounted to SEK -16.2 million (-27.6).

SIGNIFICANT EVENTS DURING THE QUARTER

• NovaAlgoma Cement Carriers (NACC) placed an order worth EUR 0.5 million for Climeon's HeatPower 300 system. The HeatPower 300 unit will be installed at a Chinese shipyard, which is currently building bulk carriers for NACC to transport dry cement.
• Climeon completed the deliveries of all six HeatPower 300 units, which will be integrated onboard six of A. P. Møller-Maersk's new 17,200 TEU container ships. The vessels, currently under construction at HD-HHI’s shipyard in South Korea, will use Climeon’s HeatPower 300 system to improve energy efficiency.
• The board decided to carry out a directed share issue of approximately SEK 50 million before transaction costs. Several new investors subscribed for shares, alongside existing shareholders such as Peter Lindell, SEB Foundation, and MP Pensjon PK.
• At Climeon's extraordinary general meeting on December 9, it was decided, in accordance with the board's proposal, to amend the articles of association, changing the limits for the number of shares and share capital. The meeting also approved a reverse stock split of the company’s shares (1:10), with a new nominal value of SEK 0.15 per share. At the general meeting, Sebastian Ehrnrooth was appointed as the new Chairman of the Board, joining Thomas Öström and Joakim Thölin to form a highly competent and engaged board for Climeon.

JANUARY - DECEMBER

• Order intake amounted to SEK 6.2 million (52.0)
• Net sales amounted to SEK 42.6 million (6.2)
• Order backlog amounted to SEK 18.5 million (80.5)
• Operating profit amounted to SEK -102.3 million (-102.6).
• Profit/loss after financial items amounted to SEK -103.7 million (-135.7)
• Earnings per share, before and after dilution, amounted to SEK -0.40 (-0.52)
• Cash flow from operating activities after changes in working capital amounted to SEK -83.4 million (-90.0) and total cash and cash equivalents amounted to SEK 26.3 million (77.5). Additionally, restricted cash amounted to SEK 6.1 million for guarantees related to future customer deliveries in Q1 2025. Thus, total cash and cash equivalents, including restricted funds, amounted to SEK 32.4 million.

A word from our CEO:

Important Breakthrough in the Marine Market with Bulk Carriers and Installations in China
HEATPOWER 300 PRODUCES SUSTAINABLE ELECTRICITY FOR INDUSTRIAL CUSTOMER – SUCCESSFUL DELIVERIES TO MARINE CUSTOMERS

2024 was an important year for Climeon, marked by progress across all aspects of our business and operations. Demand for Climeon’s products, particularly within the marine market, experienced notable growth. This surge reflects the industry’s increasing need for energy-efficient solutions that reduce fuel consumption and greenhouse gas emissions—driven in large part by new regulations that now require shipowners to pay for carbon emissions when operating in Europe.

The demand for waste heat recovery technology, particularly Organic Rankine Cycle (ORC) systems, has increased substantially, with Climeon now listed as a preferred supplier at several key shipyards. Additionally, the marine industry has seen a surge in new vessel orders, including a record number of container ships well-suited for Climeon’s HeatPower technology. As these newly ordered vessels move into the design and construction phases, shipyards are actively placing orders for equipment such as Climeon’s, accelerating discussions about integrating Climeon’s technology into both new builds and existing fleets.

During the quarter, we were able to announce the sale of a HeatPower 300 system to the shipping company NovaAlgoma Cement Carriers for one of their new bulk carriers for dry cement, which will be built in China. With this project, Climeon has expanded its customer base to include both bulk carriers and shipbuilders in China, the world’s largest shipbuilding market.

In the second half of the year, we delivered the entire series of six HeatPower 300 systems to the South Korean shipyard HD-HHI. The systems are now being installed and are scheduled for commissioning in the spring on the six container ships being built for A. P. Møller-Maersk. In January of this year, we also delivered our first HeatPower 300 in a retrofit configuration for a container ship.

This year, we successfully delivered and commissioned two HeatPower 300 units in collaboration with our industrial partner, Termolink, at NEO Group’s facility in Lithuania. These systems are now generating sustainable electricity and playing a key role in reducing emissions at the site, demonstrating the impact of our HeatPower technology in industrial applications.

“Our latest order, successful deliveries to leading marine customers, and strong market trends toward sustainable energy and reduced carbon emissions highlight the global sales potential of HeatPower 300.”

Throughout 2024, we implemented cost-saving measures that will begin to deliver their full impact in 2025, with positive effects on cash flow and profitability as business volumes grow. Our financial position was strengthened by a directed share issue approved by the board in October, in which both existing owners and new investors expressed confidence in Climeon. This resulted in SEK 50 million in funding before transaction costs—resources that are now being used to advance the commercialization of the HeatPower 300 and support the delivery of both current and future orders.

At an extraordinary general meeting in December, we welcomed Sebastian Ehrnrooth as our new Chairman of the Board. Together with Thomas Öström and Joakim Thölin, Climeon now has a highly skilled and dedicated board.

With a strong network of sales partners across key marine markets—including China, Korea, the USA, and select regions in Europe—Climeon is well-positioned to accelerate the commercialization of HeatPower 300, and we look forward to an exciting 2025.

Lena Sundquist, CEO, Climeon

For full report, please see attached file below.