STOCKHOLM, Feb. 19, 2021 /PRNewswire/ --
INTERIM REPORT
Fourth quarter 2020
- Net turnover of SEK 4.8 m
(SEK 40.1 m)
- Gross Profit of SEK 1.1 m
(SEK 4.0 m) or gross margin of 23%
(10%)
- Operating Loss/EBIT of SEK -22.2
m (SEK -22.8 m)
- Net loss for the period of SEK -24.4
m (SEK -25.5 m)
- Order Book grew by 38% to EUR 13.9
m or SEK 139.3 m (EUR 9.6 m or SEK 100.9
m as at end of Q3 2020)
January - December 2020
- Year to date net turnover of SEK 39.7
m (SEK 91.1 m)
- Gross Profit of SEK 5.5m
(SEK -3.6 m) or gross margin of 14%
(-4%)
- Operating Loss/EBIT of SEK -77.2
m (SEK -88.1m)
- Net Loss for the period of SEK -85.5
m (SEK -102.0 m).
- For the full year, the Order Book grew 227% to EUR 13.9 m or SEK 139.3
m at the end of Q4 2020 (EUR 4.1
m or SEK 42.6 m as at end of
Q4 2019)
Significant
events during the Fourth quarter
- The Company carried out a directed share issue of SEK 65.9m to strategic and qualified investors to
finance an accelerated growth strategy.
- The Company received the official approval and issuance of the
United States Environmental Protection Agency ("EPA") Tier 3
certificate for OXE300.
- OXE Marine AB distributor Diesel Outboards LLC confirmed order
for more than 50 OXE300 from US government for deployment in
Central America.
- First shipments of OXE200 parts delivered to Albany (GA, USA).
Significant events after the reporting
period
- OXE125-200 model year 2021 granted approval by EPA.
- Start of assembly of OXE125-200 initiated by ONM in
Albany (GA, USA).
- The board of directors resolved to appoint Magnus Grönborg as
CEO and to reorganize its management team by appointing the current
CEO Myron Mahendra as EVP Business
Development, Sales and Marketing. In addition, the chairman of the
board Anders Berg will increase his
operational focus on the company by assuming a supportive
operational role with the management team. Magnus Grönborg will
replace Myron Mahendra as CEO in a
few months, with the closer date yet to be agreed.
- First units of OXE300 assembled and shipped from PanLink's
Polish site in Tczew.
COMMENTS BY THE CEO
We continue to see strong demand for the OXE, the company
increased its Order Book by 38% to SEK 139.3
m at the end of Q4 (45% organic growth excluding exchange
rate differences) - all of which are targeted to be delivered
during 2021 - see bar chart below in respect to order book
development in the last 15 months.
As explained in my previous interim report, we expected subdued
sales for this quarter due to lack of completed units available,
and as a result, net turnover amounted to SEK 4.8 m (SEK 40.1
m) for Q4 whilst achieving a gross profit of SEK 1.1 m (SEK 4.0
m) with a gross margin of 23% (10%). As for the full
financial year, we achieved a positive gross profit of SEK 5.5 m (-3.6 m)
or gross margin of 14% (-4%) for the first time
in the Company's history. We expect to see a more positive gross
margin development in the coming year as the higher margin OXE300
product is introduced to the market.
Our strategic decision of moving the OXE200 production away from
UFAB took place during Q2 of the year and we have since initiated
the start of assembly of OXE200 series in January 2021 at the chosen facility based in
Albany, Georgia in the South East
of the US with Outboard Network Manufacturing (ONM) as our assembly
partner.
Our preparation for series production of the OXE300 with our
assembly partner, PanLink, with its operations in Poland, has progressed well. We continue to
build a number of pre-series engines in Ängelholm and have
delivered to a number of customers in the US and Middle East for demonstration purposes. We
have delivered production series parts to Poland during this reporting period. Since
then, the company has started a controlled production ramp up in
February 2021.
The Company has continued to monitor its Distribution network -
there has been some new appointments as well as terminations, which
has led the Company to re-purchase engines, and selling them
onwards to new distributors - this has meant no new net sales but
has led to improvements in reducing its accounts receivables
balance.
We continue with our preliminary assessment of BMW's 4-cylinder
two litre turbo diesel engine for marine application - to power its
next generation OXE200 series. We expect to develop a prototype
version for sea trials at the end of Q1 2021. Other development
work continues in accordance to plan especially with electric
outboard solutions.
COVID-19
Like most companies, OXE Marine was impacted by the global
pandemic during the year. In particular, the supply chain was
disrupted as various factories were closed due to local lockdown
restrictions or because of COVID-19 infections. This was
undoubtedly a contributing factor to a slower ramp up in production
of the OXE300 as well as causing a delay in the start of serial
production. In response to the pandemic, the company put certain
employees on short term furlough over the summer period. In
addition, the Management team all took a voluntary 20% pay
reduction during the same period. During Q4, there were no more
employees on furlough, and it has been `all hands-on deck' to
ensure we are prepared for 2021 and the start of production of the
OXE300 and OXE200. As of now, in Q1 2021, we still see some
challenges as a result of COVID-19, in particular the recent travel
restrictions to Poland and the US.
We have used technology to get around these challenges as best as
possible and have recently been able to send personnel to both
Poland and the US to assist in the
start of production. We therefore continue to mitigate these risks
as best as possible during these challenging times.
At the beginning 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 19-02-2021 07:00
CET.
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) (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. OXE Diesel has a unique belt driven propulsion system that
allows a hydraulic multi-friction gearbox to be mounted. This means
that the engine can handle significantly higher loads than a
traditional outboard engine. OXE ́s OXE diesel has a horizontally
mounted engine as opposed to a traditional outboard with a
vertically mounted engine.
This information was brought to you by Cision
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The following files are available for download:
https://mb.cision.com/Main/16067/3288858/1375429.pdf
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Q4 2020 INTERIM
REPORT
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https://news.cision.com/oxe-marine-ab/i/q4-2020-interim-report,c2878651
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Q4 2020 INTERIM
REPORT
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SOURCE OXE Marine AB