New Risk • Oct 23
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €8.66m (US$9.34m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (48% average daily change). Earnings have declined by 43% per year over the past 5 years. Revenue is less than US$1m (kr2.1m revenue, or US$188k). Market cap is less than US$10m (€8.66m market cap, or US$9.34m). Minor Risk Shareholders have been diluted in the past year (38% increase in shares outstanding). Reported Earnings • Sep 22
First half 2024 earnings released First half 2024 results: kr0.72 loss per share. Net loss: kr117.3m (loss widened 108% from 1H 2023). Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has fallen by 50% per year, which means it is performing significantly worse than earnings. Announcement • Jul 30
TECO 2030 ASA announced that it expects to receive NOK 11 million in funding TECO 2030 ASA announced a private placement that it will issue 5,500,000 new shares at an issue price of NOK 2 per share for the gross proceeds of NOK 11,000,000 on July 29, 2024.
On the same day, the company issued 2,000,000 new shares at an issue price of NOK 2 per share for the gross proceeds of NOK 4,000,000 in its first tranche. Reported Earnings • Jul 18
Full year 2023 earnings released: kr0.73 loss per share (vs kr0.65 loss in FY 2022) Full year 2023 results: kr0.73 loss per share (further deteriorated from kr0.65 loss in FY 2022). Net loss: kr117.7m (loss widened 26% from FY 2022). Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has fallen by 38% per year, which means it is performing significantly worse than earnings. New Risk • Jul 04
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 25% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (37% average weekly change). Earnings have declined by 46% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Shareholders have been diluted in the past year (25% increase in shares outstanding). Revenue is less than US$5m (kr12m revenue, or US$1.1m). Market cap is less than US$100m (€26.9m market cap, or US$29.0m). New Risk • Jun 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr130m free cash flow). Share price has been highly volatile over the past 3 months (27% average weekly change). Earnings have declined by 46% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Revenue is less than US$5m (kr12m revenue, or US$1.1m). Market cap is less than US$100m (€23.7m market cap, or US$25.4m). New Risk • Mar 03
New major risk - Revenue and earnings growth Earnings have declined by 46% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr130m free cash flow). Share price has been highly volatile over the past 3 months (26% average weekly change). Earnings have declined by 46% per year over the past 5 years. Minor Risks Revenue is less than US$5m (kr12m revenue, or US$1.1m). Market cap is less than US$100m (€34.1m market cap, or US$36.9m). Reported Earnings • Nov 30
Third quarter 2023 earnings released Third quarter 2023 results: Net loss: kr22.2m (loss narrowed 6.5% from 3Q 2022). Revenue is forecast to grow 63% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Machinery industry in Germany. Announcement • Oct 13
TECO 2030 ASA Elaborates the Fcm400 TECO 2030 ASA elaborated the FCM400. The FCM400 has already an Approval in Principle from DNV and currently undergoes type approval process for maritime and heavy-duty applications. FCM400 is inherently gas-safe to accommodate easy integration onboard a ship for zero emission energy generation. TECO 2030 has developed hydrogen fuel cells that enable ships and other heavy-duty applications to become emissions-free, and the company is in the process of establishing Europe's first Giga production facility for hydrogen PEM fuel cell stacks and modules in Narvik, Norway. Production of fuel cell stacks is already underway, and the commencement of module production is expected tostart within the next few months. TECO 2030's fuel cell stacks employ unique technologies developed together with technology partner, AVL, a forerunner in hydrogen applications, enabling power density and performance. TECO 2030's world-class fuel cell system is a technologically advanced clean energy generation system. The attributes of the modular 400kW fuel cell system includes industry leading energy efficiency, inherent safety concept, leading dimensions and component design, lifetime, and rapid dynamic load response. Safety is always the key priority. TECO 2030's fuel cell system has been developed along with an inherent safety concept, this means that the design and operation of fuel cells minimize consequence of potential hazards. This includes a separate and independent safety system, venting arrangement, certified and field proven components, and robust containment systems. The FCM400 system has the lowest footprint on the market when calculating poweroutput per unit volume, meaning that there is no other supplier of similar energy density for marine and heavy-duty applications. Real estate onboard a ship or similar sites is limited so the importance of energy density is key to many of TECO 2030's clients and partners. The FCM400 has a dynamic load which relates to the ability of the fuel cell to rapidly respond to changes in power demand, which is important for mobility and grid applications were power requirements can change swiftly. Reported Earnings • Sep 03
Second quarter 2023 earnings released Second quarter 2023 results: Net loss: kr28.9m (loss widened 73% from 2Q 2022). Revenue is forecast to grow 60% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Machinery industry in Germany. New Risk • Jun 30
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: €90.0m (US$97.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Less than 1 year of cash runway based on free cash flow trend (-kr181m free cash flow). Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Shareholders have been diluted in the past year (15% increase in shares outstanding). Revenue is less than US$5m (kr16m revenue, or US$1.5m). Market cap is less than US$100m (€90.0m market cap, or US$97.9m). Reported Earnings • Apr 30
Full year 2022 earnings released: kr0.65 loss per share (vs kr0.42 loss in FY 2021) Full year 2022 results: kr0.65 loss per share (further deteriorated from kr0.42 loss in FY 2021). Net loss: kr93.1m (loss widened 76% from FY 2021). Revenue is forecast to grow 53% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Machinery industry in Germany. Announcement • Jan 12
TECO 2030 Completes First FCM400's Component Procurement TECO 2030 has completed selection of all major component suppliers and procured necessary parts for the first fuel cell modules (FCM400). This means the FCM400 development is close to completion and the first units are ready for assembly. The layout release entails a freeze of all functional components to allow for further resimulation and fine detail solutions to be executed. The first FCM400 will be assembled at AVL's facility in Graz, Austria during Quarter 2, before its scheduled operation in the advanced testbed for complete simulation. The fuel cell development project now shifts from design engineering to the build and validation phase. The FCM400 will complete advanced testbed operations during Quarter 3 2023. The FCM400 is the building block in TECO 2030's Fuel Cell Power System and is a key driver towards achieving zero emissions while operating marine and heavy-duty applications. The system is designed for an electrical capacity of 400kW. Reported Earnings • Nov 16
Third quarter 2022 earnings released Third quarter 2022 results: Net loss: kr23.7m (loss widened 59% from 3Q 2021). Revenue is forecast to grow 98% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Machinery industry in Germany. Board Change • Nov 16
No independent directors There are 4 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. No independent directors (5 non-independent directors). Chairperson Sigurd Lange is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of experienced directors. Breakeven Date Change • May 01
Forecast breakeven date pushed back to 2024 The analyst covering TECO 2030 previously expected the company to break even in 2022. New forecast suggests the company will make a profit of kr3.00m in 2024. Average annual earnings growth of 79% is required to achieve expected profit on schedule. Board Change • Apr 27
No independent directors There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 5 new directors. No experienced directors. No highly experienced directors. No independent directors (5 non-independent directors). Chairperson Sigurd Lange is the most experienced director on the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Lack of board continuity. Lack of experienced directors. Breakeven Date Change • Feb 22
Forecast breakeven date pushed back to 2023 The 2 analysts covering TECO 2030 previously expected the company to break even in 2022. New consensus forecast suggests the company will make a profit of kr26.5m in 2023. Average annual earnings growth of 72% is required to achieve expected profit on schedule. 